Regulator encourages institutional investors to increase equity investments

The China Securities Regulatory Commission has encouraged mid- and long-term institutional investors to beef up equity investments at a meeting on Thursday, as part of the commission's continuous efforts to boost investors' confidence.

The participation of mid- and long-term funds in capital market reform and development is a "rare opportunity" as residents' demand for wealth management, asset management and retirement investment is constantly growing, the CSRC said in a statement on Thursday after meeting heads of the National Council for Social Security Fund and some large banks and insurers.

The meeting encouraged institutional investors to establish a long-term evaluation mechanism of three years or more to increase the scale and proportion of equity investments while pledging to further support mid- and long-term investors' participation in the capital market.

It is "an appropriate timing" for mid- and long-term funds, such as those managed by pension managers, insurance companies and banks' wealth management arms, to accelerate equity investments amid the country's economic transformation, financial market reforms and downward trend of long-term interest rates, the statement said.