Recently, Wu Qing, Chairman of the China Securities Regulatory Commission, published a signed article titled "Striving to Create a New Era of High Quality Development in the Capital Market" in the magazine "Qiushi". In the aspect of "sticking to the principle of stability, and making every effort to form and consolidate the good momentum of market stabilization", Wu Qing proposed that "together with the People's Bank of China and other relevant parties, we should better play the role of two structural monetary policy tools, enrich the policy tools for stabilizing the market, and do a good job in the reserve of incremental policies." Since last year, the CSRC, together with relevant ministries and commissions, has introduced a series of measures to promote the entry of medium and long-term funds into the market, and promote the establishment of an institutional environment of "long-term investment"; Introduce two structural monetary policy tools to support the stable development of the capital market and boost market confidence. Experts interviewed believe that in the future, policy measures to promote the entry of medium and long-term funds into the market are expected to gradually be implemented, promoting the formation of a more stable investment structure in the market. In addition, incremental policy reserves can be made in areas such as reducing long-term investor taxes, enriching investment products, preparing stabilization funds, and strengthening investor protection to reduce the impact of market fluctuations, boost investor confidence, guide long-term value investments, and stabilize market operations. A series of stable market policies have been introduced, and stable medium and long-term funds are the "ballast stone" of the capital market. In September last year, the Central Financial Office and the China Securities Regulatory Commission jointly issued the "Guiding Opinions on Promoting the Entry of Medium - and Long Term Funds into the Market". In January this year, the Central Financial Office, the China Securities Regulatory Commission, and six other ministries jointly issued the "Implementation Plan for Promoting the Entry of Medium - and Long Term Funds into the Market" (hereinafter referred to as the "Implementation Plan"), focusing on the bottleneck problems of public funds, commercial insurance funds, pension funds, and other medium - and long-term funds entering the market, proposing a series of specific measures to promote the construction of a "long-term investment" institutional environment. In addition, in October last year, the People's Bank of China launched two structural monetary policy tools, namely, swap facilities for securities, funds and insurance companies, stock repurchase, and increased holdings of refinancing. At present, the exchange convenience has carried out two operations with a total amount of 105 billion yuan, and the participating institutions have expanded from the first 20 to 40; More than 300 listed companies have disclosed plans for buybacks, increased holdings, and refinancing, which have played an important role in maintaining the stable operation of the capital market and boosting market confidence. On January 26th of this year, the China Securities Regulatory Commission released the "Action Plan for Promoting the High Quality Development of Index based Investment in the Capital Market" (hereinafter referred to as the "Action Plan"), which proposed relevant measures from the aspects of continuously enriching the index fund product system, accelerating the optimization of the index based investment development ecology, strengthening supervision, and preventing risks, to promote the high-quality development of capital market index based investment. Since 2024, a series of stabilizing policies introduced by multiple ministries have achieved certain results in maintaining market stability, boosting investor confidence, and promoting high-quality development of the capital market Tian Lihui, Dean of the Institute of Financial Development at Nankai University, stated in an interview with Securities Daily that by promoting the establishment of a "long-term investment" institutional environment, more long-term funds such as insurance and pension funds can be attracted to the market, increasing market liquidity, optimizing investor structure, and enhancing market stability. Moreover, the Action Plan promotes the popularization of index based investment, lowers the threshold for investor participation, and enhances market transparency and efficiency. At the same time, the two structural monetary policy tools jointly launched by the CSRC and the People's Bank of China have provided liquidity support for the market and enhanced market confidence. Yang Chao, Chief Analyst of Strategy at China Galaxy Securities, stated that a series of stabilizing policies have brought incremental capital expectations to the market, providing strong support for its stable operation. With the successive introduction of guidance and implementation plans for the entry of medium - and long-term funds into the market, the space for capital entry is opening up, and the enthusiasm for entry is increasing. Along with the rapid expansion of the ETF market, index investing has ushered in development opportunities. The Central Political Bureau meeting and the Central Economic Work Conference held in December last year both proposed to 'stabilize the real estate and stock markets' by making adequate incremental policy reserves. Subsequently, the China Securities Regulatory Commission held an expanded meeting of its party committee to convey the spirit of the Central Economic Work Conference and proposed to resolutely implement the important requirements of "stabilizing the real estate and stock markets", enhance the forward-looking and proactive nature of market monitoring, early warning, and response, strengthen the linkage supervision of domestic and foreign, on-site and off-site, futures and spot markets, strengthen targeted monitoring and supervision of margin trading, over-the-counter derivatives, quantitative trading, etc., accelerate the implementation of incremental policies, continue to make good use of stabilizing monetary policy tools, strengthen and improve market expectation management, focus on stabilizing funds, leverage, and expectations, and effectively maintain the stability of the capital market. In January this year, the China Securities Regulatory Commission held the 2025 system work conference, and proposed the first task is to "adhere to the principle of stability, and make every effort to form and consolidate a good momentum of market stability." It also proposed that "the People's Bank of China should better play the role of two structural monetary policy tools, and strengthen the reserve of strategic forces and the construction of market stability mechanism." For the "enrich market stability policy tools, and do a good job in the reserve of incremental policies" proposed by Wu Qing this time, market participants believe that the measures in the Implementation Plan to promote the entry of all kinds of medium and long-term funds into the market, and optimize the investment ecology of the capital market will be gradually implemented, and increase the scale and proportion of medium and long-term capital investment in A-shares. On January 23rd, at the press conference of the State Council Information Office, Wu Qing introduced the specific measures of the "Implementation Plan", including clarifying that the circulating market value of A-shares held by public funds will increase by at least 10% annually in the next three years; Strive for large state-owned insurance companies to invest 30% of their annual premium increase in A-shares starting from 2025; The pilot program for long-term stock investment of insurance funds will be implemented in the first half of 2025, with a scale of no less than 100 billion yuan, and will gradually expand in the future; Public funds, state-owned commercial insurance companies, basic pension insurance funds, annuity funds, etc. should comprehensively establish and implement long-term assessments for more than three years, significantly reduce the weight of the annual operating indicators assessment of state-owned commercial insurance companies, and refine and clarify the long-term assessment arrangements for national social security funds for more than five years. In addition, the China Securities Regulatory Commission will further increase policy supply and strive to create a market ecology that is more conducive to long-term investment, value investment, and rational investment. On the asset side, focus on promoting the quality and investment value of listed companies; On the trading side, continuously enrich the supply of products and tools suitable for medium - and long-term investment; On the institutional side, promote the continuous improvement of professional service capabilities; On the law enforcement side, we must resolutely maintain the order of the "three publics" in the market. In terms of incremental policy reserves, Tian Lihui believes that more tax incentives can be given to long-term investors, such as reducing capital gains tax and extending tax exemptions, to motivate more investors to adopt long-term investment strategies; We need to further improve the delisting system, strengthen information disclosure requirements, and enhance the quality of listed companies; Develop new financial products suitable for different risk preferences, such as ETFs (Exchange Traded Funds), REITs (Real Estate Investment Trusts), etc., to meet the diversified needs of investors; Strengthen the crackdown on illegal activities such as insider trading and market manipulation, and create a fair and just market environment; Carry out the establishment of a stabilization fund to form the backbone of the stable and upward stock market. Yang Chao believes that the protection policies for small and medium-sized investors are expected to be further improved. Through measures such as improving investor protection mechanisms and cracking down on illegal and irregular behaviors, investor confidence can be enhanced and market operations can be stabilized; The policy of encouraging medium and long-term capital to enter the market may be further refined and improved to promote the formation of a more stable investment structure in the market; Meanwhile, drawing on overseas experience, the stabilization fund is expected to accelerate its preparation and play a key role in maintaining market stability and mitigating short-term fluctuations. Market insiders believe that fully stabilizing the capital market has important practical significance and can help support economic recovery and improvement. On the one hand, the capital market plays an important role in supporting technological innovation and serving the development of new quality productivity. Yang Chao stated that fully stabilizing the capital market can attract more long-term capital inflows, provide sufficient financial support for science and technology innovation enterprises, stimulate their innovation vitality, promote the rational allocation of resources, and promote a positive interaction between the financial market and the real economy. Tian Lihui stated that a stable capital market can effectively guide the flow of social resources to the real economy, especially supporting the development of technology-based innovative enterprises, thereby promoting industrial upgrading and technological progress. On the other hand, the capital market is also an important market for serving residents' wealth management. Tian Lihui stated that a healthy capital market is conducive to the preservation and appreciation of social security funds such as pensions and insurance premiums, which can provide residents with property income and directly affect the quality of life and pension security level of the general public. Yang Chao stated that as an important channel for residents' wealth management, a more stable capital market can provide reliable investment returns for residents, achieve the preservation and appreciation of residents' wealth, and thus promote the steady upward trend of the overall economy. (New Society)