Accelerated entry of 3 types of medium and long-term domestic capital into the market in 2020 is expected to bring hundreds of billions of increments
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Source: Securities Daily reporter Bao Xing’an. After comprehensively deepening the reform and opening-up of the capital market, three types of medium- and long-term funds such as pensions, occupational annuities and insurance funds will accelerate their entry into the market.
Expanding pension investment channels On December 30, 2019, Chen Xiangjing, director of the National Social Security Fund Fund Pension Division, revealed at the Social Security Forum of the Chinese Academy of Social Sciences and the launch of the “China Pension Development Report 2019” that social security fund interventions have been entrusted since 2016.Operating basic endowment insurance, up to now, 22 provincial (autonomous region, municipal) governments have intervened with social security funds to sign entrusted investment contracts for basic endowment insurance funds, with a contract size of more than $ 1 trillion.
Chen Xiangjing said that only 13 provinces will start entrusting by the end of 2020, which will further improve the financial sustainability of the urban and rural residents’ endowment insurance system and promote the continuous improvement of the level of personal account accumulation.
”It is imperative to realize the sustainable development of the pension security system through the expectation of enterprises to reduce their burdens and pressure on fiscal expenditures to raise the level of pension market investment.
Taking basic pension insurance as an example, the current entrusted investment ratio has not yet reached 20%.
We must increase investment in the pension market.
In particular, pension insurance for urban and rural residents must be invested and operated as early as possible to improve the pension level of the account and the ability of the fund to pay.
Chen Xiangjing said.
Suning Financial Research Institute senior justice Fu Yifu told the Securities Daily reporter that to promote the entry of pensions into the market, we need to promote the healthy interaction of healthy pension operators and the healthy development of the capital market in order to be effective.
Pensions should not only consider how to “preserve value”, or should consider “preservation” and “value-added” together.
Taking into account the characteristics of pensions, its investment should still be stable first. On this basis, try to expand investment channels and seek steady and rising value.
Fu Yifu believes that in the long run, reorganization and pensions are expected to become a stable source of long-term capital in the capital market, forming a stable cornerstone of stock value discovery and value investment, and advocating for the investment philosophy of pursuing long-term returns without bringing to the capital market.Short-term ups and downs; restructuring, pensions entering the stock market will expand the ranks of institutional investors.
How many basic pensions can enter A shares?
According to a research report issued by CITIC Securities, it is expected that over a long period of time, the “long money” brought by China’s pension system to the equity market will mainly come from the public pension system.
The basic pension entrusted by the first major subject to social security management and operation has entered the market with a scale of about 50 billion yuan, and the incremental part is expected to be about 100 billion yuan.
Pressing the “accelerator key” for occupational annuities into the market is also the second pillar of pension. Occupational annuities have been pressed for “accelerator” when entering the market.
At present, among the 33 professional annuity projects in the country, including the central state organs and institutions, 31 provinces, autonomous regions and municipalities, as well as the Xinjiang Production and Construction Corps, 15 professional annuity projects have begun investment operations. The conservative estimate is that the actual account size has exceeded 30 million.yuan.
For example, Shandong Province took the lead in launching professional annuity investment operations at the end of April 2019.
As of the end of November 2019, the cumulative plan was to reinvest more than 50 billion yuan, increase the value by more than 1.2 billion, and achieve an investment yield of 3.
32%, generating an occupational annuity budget2.
400 million yuan.
Liu Xiangdong, deputy director of the Economic Research Department of the China International Economic Exchange Center, told the Securities Daily reporter that how to revitalize sleeping or inefficient funds is one of the key points of current macro policies.
The entry of professional annuities into the market is to stimulate the value-added income of this part of the fund and tap its potential to support the development of enterprises.
Therefore, more professional annuities will be added to the market in the future, and will become an important supporting force for stabilizing the stock market.
It is optimistic that the scale of professional annuity entering the market this year may reach the level of 100 billion yuan.
The proportion of insurance funds entering the market will increase. As an important institutional investor in the capital market, insurance funds are also important incremental funds for A shares.
Guo Yiming, director of investment consultant of Jufeng Investment Gu, told a reporter from Securities Daily that the overall support for the market is quite obvious, especially under the long-term investment nature of insurance capital.
Statistics from the China Banking Regulatory Commission show that as of the end of November 2019, the balance of insurance fund utilization was 17.
Specifically, among them, bank deposits2.
42 trillion yuan, bonds 6.
31 trillion yuan, stock and securities investment funds 2.
The earliest is that in the first 11 months of 2019, the balance of insurance funds invested in stocks and securities investment funds increased by 13 compared with the same period in 2018.
3%, the share of stock and securities investment fund investment in insurance fund utilization surplus also increased by about 0 compared with the same period in 2018.
While the channels for insurance funds to enter the market have been continuously widened, the regulatory ratio of insurance funds’ equity investments has also been managed to improve.
Liang Tao, vice chairman of the China Banking Regulatory Commission, disclosed at a press conference of the State Council in July 2019. Next, consider introducing more investment autonomy of insurance companies under the principle of prudent supervision to further increase the proportion of securities investment.
At present, the CBRC is actively studying to increase the supervision ratio of equity assets of insurance companies.
In the “Interim Measures for the Supervision of Insurance Asset and Liability Management” issued in August 2019, it is proposed that for insurance companies with high asset and liability management capabilities and good matching conditions, according to market demand and the company’s actual operating conditions, the scope and model of fund use should be appropriately givenProportion and policy support for insurance 成都桑拿网 products, etc. encourage prudent and prudent insurance companies to try first.
Guo Yiming said that in addition to the constant introduction of foreign exchange, the most important height of the supervisory layer is to continuously attract long-term funds into the market.
Democracy, approval of the CSI 300 ETF budget and stock investment, while providing more convenience for institutional funds such as insurance funds to enter the market.
Therefore, the proportion of insurance funds entering the market may increase. While bringing incremental funds to the market, it will also stimulate market vitality, help deepen market reforms, and promote healthy market development.
Regarding the question of how much insurance funds can enter A shares, Guo Yiming said that the surplus of insurance funds in 2019 should exceed 18 trillion yuan.
If the 10% growth rate is to be maintained in 2020, the surplus of insurance fund utilization will reach about 20 trillion yuan.
On average over ten years, the proportion of insurance funds involved in stocks and securities investment funds averaged over 10%. On the basis of the continued increase in premium balance and the assumption that the proportion of equity assets in insurance investment increased to 15%, stocks and securities investment funds are expected to reach 30 billionAccording to the calculation of the stock market entry ratio in the past two years, the amount of incremental funds flowing into A shares in 2020 is about 500 billion yuan.