SCIO briefing on actively encouraging the flow of medium- and long-term funds into the capital market and promoting its high-quality development

Economic Daily:

Encouraging social security funds and other long-term capital to enter the market is a key component of advancing pension finance initiatives. What specific measures will the MOHRSS take in this regard? Thank you.

Li Zhong:

Thank you for your question. As you mentioned, encouraging social security funds and other long-term capital into the market is an important aspect of our broader efforts to boost pension finance. Mr. Liao just provided an update on the oversight of the national social security fund. The MOHRSS, in collaboration with relevant departments, has been actively working to improve the investment policies and regulatory frameworks for the national social security fund, basic pension insurance fund, and enterprise annuity funds. We are working to continuously expand market-based investment operations, strengthen investment management standards, and steadily enhance fund preservation and appreciation. This approach not only strengthens the pension insurance system's capacity for self-sustainability and self-balancing, but also provides important long- and medium-term capital resources for the healthy development of the capital market.

Security is always our top priority as we advance market-oriented investment operations for social security funds. Moving forward, while ensuring fund safety, we will focus more on medium- to long-term returns of the funds by adhering to principles of standardized, prudent, professional, and market-oriented operations. We will strengthen long-cycle assessment mechanisms, continuously refine investment policies for the national social security fund, basic pension insurance fund, and enterprise annuity funds, enhance investment oversight systems, and promote steady investment returns. Through scientifically sound asset allocation and prudent investment strategies, we can preserve and grow the value of social security funds. Thank you.