With the joint efforts of six departments, the stock market is about to usher in a "hundred-billion-

China's capital market is about to usher in an unprecedented transformation. On January 22, the official website of the China Securities Regulatory Commission released a major news that six major departments jointly issued the "Implementation Plan for Promoting the Entry of Medium- and Long-Term Funds into the Market", which aims to promote medium- and long-term funds such as commercial insurance funds and social security funds to increase their investment in the stock market. This move is seen as a key move to stabilize the stock market and is expected to inject new vitality into the A-share market.

The entry of medium- and long-term funds into the market: a market stabilizer or a "market rescue" tool?

The release of the Implementation Plan has undoubtedly given a shot in the arm to the currently depressed A-share market. The plan clearly proposes to increase the proportion of A-share investment of commercial insurance funds, optimize the investment management mechanism of social security funds and pension insurance funds, and promote the market-oriented investment operation of enterprise annuity funds. The implementation of these measures will bring huge financial support to the stock market, help stabilize market confidence and improve market liquidity. However, we also need to think calmly whether the entry of medium- and long-term funds into the market can become a long-term stabilizer of the market, rather than a short-term "rescue" tool? After all, a truly healthy market should be based on corporate value and investor confidence, rather than relying on the continuous injection of policy funds.

Capital inflow and market reform: a dual-wheel drive or a one-sided approach?

While promoting the entry of medium- and long-term funds into the market, we cannot ignore the deep-level reform of the capital market. The Implementation Plan mentions measures such as optimizing the supervision of public funds and promoting the implementation of private securities investment fund rules. These are important steps towards marketization and rule of law. However, how to better improve the market mechanism, improve the quality of listed companies, and strengthen investor protection while guiding funds into the market is still a major challenge we face. What we expect to see is that the entry of funds into the market and market reform can form a virtuous interaction and jointly promote the long-term development of China's capital market, rather than focusing on one and losing the other and falling into the trap of short-term thinking.

The release of the Implementation Plan marks a new stage in the development of China's capital market. It not only reflects the determination of the regulatory authorities to stabilize the market, but also reflects the strategic considerations for long-term and healthy development. However, the real prosperity of the market requires more efforts. We look forward to seeing that with the support of medium- and long-term funds, the A-share market can gradually establish a more mature and stable investment ecology, and truly become a "barometer" of the national economy and a "booster" of the real economy. Only in this way can we achieve long-term stability in the capital market and provide strong support for the high-quality development of China's economy.

This article comes from the financial sector