China Securities Regulatory Commission Vice Chairman Li Chao Says Market Stability to Be Strengthened in 15th

Li Chao, vice chairman of the China Securities Regulatory Commission, said that during the 15th Five-Year Plan period, the capital market will further enhance its internal stability, continue to strengthen the construction of market stabilization mechanisms, and steadily expand the forces that stabilize the market. It will further broaden medium- and long-term funds, channels and ways of entering the market, and safeguard the smooth operation of the capital market. Since September 2024, regulators have gradually built a set of market stabilization arrangements, including Central Huijin's increased holdings, the entry of medium- and long-term funds, countercyclical adjustment tools, and share buybacks and increased holdings by listed companies. While increasing short-term liquidity support, regulators have advanced investment-side reform, broadened medium- and long-term funds, channels and ways of entering the market, and improved the market mechanism and ecosystem for long-term money to make long-term investments.

Since the start of 2026, medium- and long-term funds such as social security, annuity and insurance funds have net bought more than RMB 600 billion of A-shares in total, and their holdings of tradable A-share market value increased by 12.5% from the end of 2025. In 2025, the National Social Security Fund's investment return rate reached 13.2%. In the first half of 2026, the public fund industry created RMB 1.74 trillion in profits for investors. The China Securities Regulatory Commission proposed that it will promote the steady increase of the scale and proportion of medium- and long-term funds entering the market, continue to vigorously develop equity public funds, strengthen cross-market, cross-industry and cross-border risk monitoring, promote the establishment of a long-term mechanism for monetary policy tools supporting the capital market, and enrich the policy toolbox.

Since the start of 2026, foreign capital has conducted research and made arrangements in the A-share market. According to half-year reports, a total of 52 qualified foreign institutional investors (QFIIs) appeared among the top ten tradable shareholders of 1,724 A-share companies, with combined holdings valued at more than RMB 340 billion, an increase of more than RMB 191.7 billion from the end of the first quarter.