On January 23, the State Council Information Office held a press conference to introduce the situation of vigorously promoting the entry of medium and long-term funds into the market and promoting the high-quality development of the capital market. The reporter learned from the meeting that fiscal and monetary policies will continue to exert efforts to help the capital market operate smoothly and healthily. The Ministry of Finance will take multiple measures to guide state-owned commercial insurance companies to better carry out long-term and value investments, and optimize the investment assessment of the national social security fund; The People's Bank of China will continue to optimize relevant policies, improve the ease of use of monetary policy tools to support the capital market, and promote the expansion and increment of tools in due time. The revision of the long-term assessment system for state-owned commercial insurance companies and the implementation of long-term assessment of their operating performance is an important measure to promote insurance companies to utilize the capital market for medium - and long-term investments. Vice Minister of Finance Liao Min revealed that he will further promote the entry of insurance funds into the market and revise the long-term assessment system for state-owned commercial insurance companies. One is to further increase the long-term assessment weight of indicators related to business efficiency. The assessment weight of the long-term indicator of "return on equity" has been adjusted to no less than 60%, which can increase more medium and long-term funds entering the capital market, make the assessment cycle more suitable for the investment cycle of long-term funds, and further leverage the long-term capital attributes of insurance funds. The second is to implement a long-term assessment of the preservation and appreciation indicators of state-owned capital. Through a combination of long-term and short-term assessment methods, state-owned commercial insurance companies are encouraged to increase their investment in the medium and long term, achieving stable growth in owner's equity and preservation and appreciation of state-owned capital. The third is to promote state-owned commercial insurance companies to improve their investment management capabilities. Encourage and guide state-owned commercial insurance companies to strengthen investment management and enhance their ability to operate funds in the long term. We believe that this series of measures will help guide and promote state-owned commercial insurance companies to pay more attention to stable operations, better carry out long-term and value investments, more effectively play the role of insurance funds as market stabilizers and economic boosters, and inject more impetus into the sustained and healthy development of China's capital market Liao Min said. What are the specific arrangements for optimizing investment assessment policies for the National Social Security Fund in the future? Liao Min responded by saying that he is working hard on two tasks. One of them is to optimize and improve the investment management system of the national social security fund. We have revised the management measures for domestic investment of the National Social Security Fund and solicited opinions from the public. The Ministry of Finance is urgently studying and absorbing the feedback from various sectors. After completing the procedures, it will meet with everyone formally as soon as possible Liao Min stated that the revised approach combines the latest developments in the financial market, optimizes the proportion of different investment products, and further enhances the investment intensity and flexibility of the national social security fund. At the same time, we will improve the long-term assessment system for the investment and operation of the national social security fund. Liao Min stated that the Ministry of Finance is studying the improvement of the long-term assessment system for the national social security fund, refining and perfecting the requirements for a long-term assessment mechanism of more than 5 years. It plans to assess the investment and operation of the fund from different dimensions such as risk management and value preservation and appreciation, taking into account both short-term investment returns and long-term value preservation and appreciation goals of the fund. This will solidify the concept of long-term investment and truly support the long-term stable and healthy development of China's capital market. In 2024, the People's Bank of China has innovatively set up two monetary policy instruments - securities, funds, insurance company swap facilities and stock repurchase and re lending - to support the stable development of the capital market. At present, the implementation of these two tools is progressing smoothly and has played an important role in maintaining the stable operation of the capital market and boosting market confidence Zou Lan, member of the Party Committee of the People's Bank of China, said that in the next stage, the People's Bank of China will work with relevant departments to continuously optimize relevant policies, improve the ease of use of tools, and promote the expansion and increment of tools in a timely manner according to the early practical experience and business development, so that relevant enterprises and institutions can obtain sufficient medium and long-term funds to increase investment as needed. Zou Lan also provided specific updates on the implementation progress of two tools. Among them, securities, funds, and insurance company swap facilities have carried out two operations, with a total amount of 105 billion yuan. The 50 billion yuan invested in October last year has been fully used for financing and increasing stock holdings. The 55 billion yuan invested in January this year can now be used by industry institutions to raise funds and increase their holdings of stocks at any time. With the support of various policies, the scale of self operated stock investment by securities companies has significantly increased. After several months of adaptation, the business processes of this tool in all aspects have been completely smooth Zou Lan stated that with sufficient policy space and the implementation plan for promoting the entry of medium and long-term funds into the market, it is expected that the business scale and response speed will be significantly improved. The stock repurchase and increase in holdings loans have also been widely welcomed by the market Zou Lan introduced that, in order to further play the role of policy tools in stabilizing the capital market, the People's Bank of China has continued to optimize the policy arrangement of stock repurchase, shareholding increase and refinancing in combination with market concerns. It has reduced the proportion of its own funds when applying for loans from 30% to 10%, and extended the maximum term of loans from one year to three years. It has also encouraged banks to issue credit loans to facilitate banks to carry out loan business, fully meeting the financing needs of market value management of listed companies. Zou Lan revealed that as of now, financial institutions have reached cooperation intentions with nearly 800 listed companies and major shareholders. More than 300 listed companies have publicly disclosed their intention to apply for stock repurchase and increase loans, with a maximum amount of over 60 billion yuan. More than 40% of companies have a market value of over 10 billion yuan. The loans are priced according to the principle of preferential interest rates, with an average interest rate level of around 2%. (New Society)