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China unveils measures to support equity market

The Edge Singapore
The Edge Singapore  • 2 min read
China unveils measures to support equity market
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On Jan 23, the Chinese Securities Regulatory Commission (CSRC), the People’s Bank of China and other state regulators announced plans to "stabilise the stock market, clear the bottlenecks for the entry of medium and long-term funds into the market" and "promote professional institutional investors to establish a long-term assessment mechanism of more than three years and increase the proportion of equity investment" as part of the "Implementation Plan for Promoting the Entry of Medium and Long-Term Funds into the Market"

The five main measures focus on guiding medium- and long-term funds such as commercial insurance funds, the National Social Security Fund, the Basic Pension Insurance Fund, enterprise (occupational) annuity funds , and public funds to invests in the market. The regulators will also encourage listed companies to increase shareholder value via share buybacks and increasing dividends.

The main measures are:

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