Long-term institutional funds' holdings of China A-share market value have risen 12.5 percent since the end of last year, signaling growing investor confidence in the country's capital market, said an official at a press conference in Beijing on Thursday.
Li Chao, vice chairman of China Securities Regulatory Commission (CSRC), revealed that since the start of this year, social security funds, pensions, insurance, and other long-term sources have made net purchases of A-shares exceeding 600 billion yuan (about 88.5 billion U.S. dollars).
Li said that investment and financing are the two fundamental functions of the capital market, while the market's role is not limited to these, they are certainly among its most important features. The two functions are complementary and mutually reinforcing, he said.
Li emphasized that in recent years, the CSRC has continuously improved the inclusiveness and adaptability of regulations, vigorously promoting the entry of long-term capital and steadily deepening comprehensive capital market reform.
He noted that the capital market is undergoing increasingly profound structural changes, the momentum of coordinated development in investment and financing is forming more rapidly, and the quality and effectiveness of service to the real economy are constantly improving.
A-share long-term funds up 12.5 pct: official
