The Stock Market Will Welcome Six Party Live Water.

For further improvement

Encourage long-term capital to enter the market

In recent years, although the shareholding ratio of institutional investors has been increasing, compared with developed markets, the proportion of institutional investors in China is still low.

Data show that as of the end of 2011, China's natural persons held a market share of A shares accounted for 26.5%, corporate legal persons accounted for 57.9%, stock investment funds, social security funds, insurance institutions, trust institutions and other institutional investors accounted for 15.6%.

The size of institutional investors is obviously small, and the market investors' unbalanced structure is very prominent.

At the same time, the market volume of natural persons accounts for about 85% of the total market.

By contrast, in developed markets such as Europe and America, institutional investors account for about 70% of the market value.

Half of them are long-term institutional investors such as pension and insurance companies, and a considerable number of public funds and gift funds.

China's social security funds, enterprise annuity and other long-term funds account for less than 5% of the market capitalization.

Wang Lin, director of the securities and Futures Commission, said recently that in order to encourage long-term capital to enter the market, the SFC will study and introduce varieties and trading methods that meet the needs of institutional investors. In the process of promoting product and business innovation, the SFC will encourage institutional investors to take the lead.

At the same time, we will adopt more flexible institutional arrangements for institutional investors' market access, business mode, rate system, evaluation and motivation.

In addition, the SFC, the Ministry of finance, the State Administration of Taxation and other departments are communicating to promote the introduction of tax incentives and deferred preferential policies for institutional investors to encourage long-term investment.

In the light of the recent regulatory policy trends, the incremental funding will include six major types, including new products and channels.

First, the existing institutional investors such as social security funds, enterprise annuity and insurance companies, the SFC encourages them to increase their investment in the capital market.

Two, we should actively promote the basic pension insurance fund, housing provident fund and other long-term funds into the capital market.

For example, a province in the South has been allowed to pfer the 100 billion yuan basic pension fund to the National Social Security Fund Council and will enter the market in the first quarter.

Three, we should actively promote the management system of private equity funds and guide the development of private funds in a sunny and standardized way.

Four is to encourage charitable funds, cultural funds, education funds and other low investment risk securities, such as fixed income products.

Five, we should accelerate the pace of introducing QFII, increase investment quota, and gradually expand the scope of RQFII pilot projects and investment quota.

Since the fourth quarter of last year, the SFC and the State Administration of foreign exchange have significantly accelerated the speed of examination and approval of QFII qualification and quota, and the amount of RQFII's first 20 billion yuan has been exhausted.

Next, QFII and RQFII are likely to increase sharply.

The six is to encourage industrial capital and major shareholders to increase their holdings.

In order to encourage industrial capital to increase shares of listed companies at a reasonable price, the SFC explicitly identified four actions such as 2% holding free shareholdings and holding more than 50% shareholding per year by holding more than 30% of major shareholders. As long as they were recorded afterwards, the obligation to exemption from the tender offer was no longer required to fulfill the administrative licensing examination and approval procedures, and the lock up period of the 2% year free shareholdings increased to 12 months from 12 months to 6 months for more than 30% of the shareholders.