Recently, the regulatory authorities have once again made it clear that they will unswervingly introduce more types of domestic and foreign institutional investors to promote the development of the team of institutional investors in China's capital market. The 2023 institutional regulatory work meeting held by the CSRC on March 24th proposed to focus on improving quality and efficiency, and continue to strengthen long-term professional investment forces. In addition, the 2023 system work meeting held by the CSRC on February 2 clearly stated that it is necessary to promote the high-quality development of equity funds and guide more medium and long-term funds to enter the market. Experts interviewed by China Securities News believe that a series of specific measures to encourage and guide the entry of long-term funds into the market have enhanced the ability of the capital market to attract long-term funds. Future incremental "long-term money" entry into the market is expected, and the capital market is expected to usher in more active water. A series of measures encourage and guide long-term funds to enter the market in the reform of the registration system, and a series of specific measures are expected to guide long-term funds from institutions to enter the market. The reform of the pilot registration system on the Science and Technology Innovation Board and the Growth Enterprise Board has established an inquiry, pricing, and placement mechanism with institutional investors as the main participants, increased the overall allocation ratio of offline investors, including pension funds and insurance funds, and increased the priority allocation ratio of offline investors to no less than 70% of the offline issuance volume. "After the full implementation of the registration system, the above mechanism has been promoted, and issuers and lead underwriters should arrange for no less than 70% of the securities issued offline to give priority to the placement of medium and long-term funds such as public funds, social security funds, pension funds, annuity funds, insurance funds, and qualified foreign investor funds." Market participants said. After the full implementation of the registration system, the newly revised "Measures for the Administration of Securities Issuance and Underwriting" clearly stipulates that social security funds, pension funds, and annuity funds managed by managers who have related relationships with underwriters and other prohibited placements can also participate in offline placements of initial public offerings of securities, further expanding the exemption scope, and strongly supporting more medium - and long-term funds to participate in the registration system reform. Under the comprehensive implementation of the registration system, the strategic placement mechanism has been further optimized. The newly revised "Measures for the Administration of Securities Issuance and Underwriting" clearly stipulates that social security funds, pension funds, and annuity funds managed by securities investment fund managers that do not participate in the strategic placement can also continue to participate in the online and offline issuance of this public offering of securities. "With the deepening openness of the capital market and the continuous support and guidance of domestic policies, domestic institutional funds with long-term investment concepts such as pensions, insurance funds, and annuity funds are expected to increase equity assets over the long term, and overseas long-term funds are also expected to continue the net inflow trend." said Tian Lihui, dean of the Financial Development Research Institute of Nankai University. In addition, Tian Lihui believes that with the comprehensive promotion of the registration system reform, the virtuous circle of "technology industry finance" will be smoother, and the ability of the capital market to attract long-term funds will continue to strengthen. The continuous promotion of investment side reform aims to create a market environment where long-term funds are "willing to come and stay". While focusing on the financing side reform, the investment side reform is also continuously promoted. China Merchants Fund recommends steadily increasing the proportion of institutional investors and the level of institutional specialization, thereby promoting the long-term healthy development of the capital market. Li Qiusuo, a strategic analyst and managing director of the Research Department of CICC, believes that with domestic policies
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：China Secruities Dairy
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