CCTV News: The meeting of the Political Bureau of the Central Committee held recently specifically mentioned "stabilizing the market" and emphasized "continuously stable and active capital markets." Since April, my country's A-share market has continued to rebound and stabilize and improve after only one day of large fluctuations. The Shanghai Composite Index once "eight consecutive rises", showing relatively strong resilience and risk resistance. Behind the market performance, there is a package of "combination punches" to stabilize the market and continue to exert force. Through the latest financial reports disclosed in the capital market, we also intuitively feel the actual effect of the "combination punch". First, let’s look at the “report card” of Central Huijin, a “standard fund”.

As the first quarter reports of listed companies and public funds were disclosed at the end of April, the holdings of the "national team" Central Huijin have also been clarified.

Central Huijin mainly invests in A-shares through Central Huijin, Central Huijin Asset Management and special asset management plans, and currently mainly holds stocks and index funds. Central Huijin has a large holding scale, and the selected targets have an important impact on the capital market. According to statistics from Wande, as of the end of the first quarter, they were among the top ten circulating shareholders of 165 listed companies, and the market value of this part of the holdings reached 4.28 trillion yuan. In addition, they hold many index funds that track different market styles of A-shares, including the Shanghai and Shenzhen 300, Shanghai Stock Exchange 50, and ChiNext. As of the end of the first quarter, the market value of index funds they held totaled more than 1 trillion yuan.

As an important strategic force to maintain the stability of the capital market, Central Huijin frequently takes decisive action and actively speaks out when market fluctuations. On April 7, Central Huijin announced that it had once again increased its holdings in trading open-end index funds. This is the third time that Central Huijin has issued a relevant announcement since October 2023 to buy or increase its holdings in trading open-end index funds. In this announcement, Central Huijin also stated that it will continue to increase its holdings in the future and resolutely maintain the smooth operation of the capital market.

In response to the future operations of the Central Huijin, the People's Bank of China stated that it firmly supports Huijin Company to increase its holdings in the stock market index fund when necessary and provide it with sufficient re-lending support.

Wang Kai, chief strategy analyst at Guosen Securities, said: "Central Huijin continues to increase its positions, and the selected targets are considered to maintain market stability and adapt to the development of new quality productivity; the voice and increase in holdings at critical moments have stabilized investor confidence and injected a booster into the continued stability and activity of the market; looking forward to the future, the People's Bank of China, as a solid backing, will provide Central Huijin with sufficient liquidity support to better cope with the disturbances of overseas uncertainties on the market."

Gathering our hearts and minds Work hard and practice: Insurance funds continue to increase their investment in A-shares with real money

The stability of the capital market is also closely related to medium- and long-term funds that can invest for longer periods of time. Through the latest financial report, the reporter found that medium- and long-term funds represented by insurance funds continued to increase their holdings in A-share companies in the first quarter of this year.

Wander data statistics show that as of the end of the first quarter, insurance funds appeared in the list of top ten circulating shareholders of 738 A-share listed companies, an increase of 13 new ones compared with the end of last year. Calculated by comparable caliber, the total market value of this part of the shares increased by 5.42%. In addition, in the first quarter of this year, insurance funds continued to increase their holdings in A-shares. In the banking and transportation industries alone, the scale of increase in holdings reached about 12 billion yuan. At present, the investment in insurance funds has covered all A-share industries.

In addition to real money and silver increasing the A-share market, in April, the State Administration for Financial Regulation raised the proportion of equity asset allocation for insurance funds. Many insurance companies believe that this will help give full play to the value investment, long-term investment advantages and the role of stabilizing the capital market, and promote the improvement of the quality and efficiency of insurance funds serving the real economy. At the same time, they said that they will steadily increase the investment scale of A-share market, especially in strategic emerging industries.

The policies to support insurance funds entering the market are still being introduced. Recently, the State Administration for Financial Supervision and Administration stated that it will further expand the pilot scope of long-term investment in insurance funds in the future, and will approve another 60 billion yuan in the near future, which also makes the pilot funds approved from the beginning of the year to the present exceed 220 billion yuan, and is expected to continue to bring incremental funds of 100 billion yuan to the stock market.