The Implementation Opinions on the "Five Major Articles on Financial Development in the Capital Market" issued by the China Securities Regulatory Commission (hereinafter referred to as the "Implementation Opinions") propose to promote the capital market to better meet the diversified needs of pension finance, including clarifying the "stable and value-added goals of serving pension funds and other medium - and long-term funds" and "providing high-quality pension financial product services". Industry insiders believe that meeting the diversified needs of pension finance will help improve China's pension security system. In addition, it is necessary to continuously optimize and improve relevant systems to achieve stable appreciation of medium - and long-term funds such as pensions. In order to achieve the goal of stable appreciation of medium and long-term funds such as pension funds, the "Implementation Opinions" propose to implement the "Guiding Opinions on Promoting the Entry of Medium and Long term Funds into the Market" and implementation plans, and to unblock the entry points of medium and long-term funds such as social security, insurance, and wealth management. Promote the improvement of the regulatory system for equity investment of insurance funds, better encourage and guide insurance companies to carry out long-term equity investment, and expand the pilot scope for long-term stock investment of insurance funds. PwC Management Consulting (Shanghai) Co., Ltd.'s partner in China's financial industry management consulting, Zhou Jin, told reporters that overall, there are two main factors affecting the entry of medium and long-term funds into the market: one is the institution's own assessment mechanism. Most investment institutions assess based on annual financial performance, which does not match the investment philosophy and objectives of long-term funds, thus affecting the enthusiasm of long-term fund allocation to stocks. Secondly, some financial institutions are facing certain capital pressures. Stock investment has a high risk factor due to its short-term volatility characteristics. Therefore, for some financial institutions with tight capital, capital constraints will affect their long-term stock allocation decisions. Zhou Jin stated that relevant policies are continuously being optimized and improved in response to the above influencing factors, such as expanding the investment categories of long-term funds, increasing the upper limit of allocation ratios, introducing swap convenience tools, and extending the assessment cycle. He suggested that in terms of regulatory policies, the next step could be to adjust the rules related to capital constraints. For example, for insurance funds, the capital occupancy coefficient for long-term stock allocation could be reduced, or a risk coefficient linked to holding or assessment periods could be adopted to better guide long-term funds such as insurance funds to increase stock allocation and extend holding periods. Lu Xiaoyue, one of the founders of Yansu Asset Management, told reporters that further efforts can be made to break through the bottlenecks of medium and long-term funds entering the market from three aspects. One is to comprehensively implement a long-term and stable performance evaluation system. With the joint issuance of the "Implementation Plan for Promoting Medium - and Long Term Capital Market Entry" by six departments in January this year, the policy tone for promoting a long-term stable performance evaluation system in the entire industry has been established. It is recommended to further refine the implementation measures, gradually determine the long-term investment evaluation and rating measures and regulatory policies for equity assets of different risk levels according to the principle of grading, classification, and steady progress. Under the premise of controllable risks, enhance the stability and risk resistance ability of the insurance industry in equity investment, and continuously improve the ability of insurance assets to cross cycles and serve the real economy in serving the high-quality development of the capital market. The second is to optimize the regulatory rules for solvency as soon as possible. At present, the industry is facing urgent pressure due to the overall decline in solvency adequacy ratio and the difficulty of capital replenishment. It is recommended to appropriately relax the solvency risk factor requirements for insurance funds investing in equity assets of some state-owned enterprises and major livelihood projects, in order to alleviate the capital pressure on the insurance industry. The third is to expand the scale and scope of insurance institutions setting up private securities investment funds to participate in capital market investment pilot projects. Establishing private equity securities investment funds by insurance institutions to participate in capital market investments can effectively avoid the drawbacks of direct stock investment or entrusted investment under the new accounting standards, and more flexibly achieve long-term allocation of equity assets. On the basis of the first two batches of pilot projects, it is suggested to continue expanding the scope of the pilot projects, simplifying the procedures and thresholds for participating in the pilot projects, and expanding the funding scale and institutional scope for participating in the pilot projects. Exploring the relaxation of individual choice for enterprise annuity is to promote the capital market to better meet the diverse financial needs of pension. The Implementation Opinions also propose to promote the inclusion of eligible index funds and other equity public funds in the scope of personal pension investment. At the same time, support eligible employers to explore the opening up of individual choices for enterprise annuity, and encourage enterprise annuity fund managers to explore differentiated investments. According to the Notice on Fully Implementing the Personal Pension System jointly issued by the Ministry of Human Resources and Social Security and other five departments at the end of last year, personal pension products are included in treasury bond in addition to the original financial products. At the same time, specific pension savings and index funds are included in the list of personal pension products to promote more pension and financial products to be included in the range of personal pension products. On December 12th last year, the China Securities Regulatory Commission included the first batch of 85 equity index funds in the list of personal pension investment products. According to data from the National Social Insurance Public Service Platform, as of February 9th, the number of personal pension fund products has been expanded to 287. Regarding the exploration of opening up individual choices for enterprise annuity proposed in the Implementation Opinions, Long Ge, Deputy Director of the Innovation and Risk Management Research Center at the University of International Business and Economics, believes that allowing individuals to choose investment portfolios based on risk preferences can promote the increase of equity allocation of high-risk preference funds, thereby improving the proportion and return level of equity investment. Meanwhile, by exploring individual investment options, more small and medium-sized enterprises and employees can be attracted to participate in pension plans, thereby expanding the coverage of enterprise pensions, enhancing their inclusiveness, and forming a virtuous cycle. Long Ge believes that managers need to design diversified products based on customer needs, enhance investment research capabilities and differentiated service levels, and promote the industry's transformation from a "scale oriented" to a "value oriented" approach in order to encourage differentiated investment in enterprise annuities. Zhou Jin added that encouraging differentiated investment in enterprise annuities can help leverage the resources and capabilities of different management institutions, enrich the supply of diversified annuity plans and investment strategies in the market, and meet the differentiated risk preferences and investment needs of different participants. In addition, several interviewees suggested exploring the integration of enterprise annuity and personal pension systems, achieving effective connection between the second and third pillars of pension, and further improving China's pension security system. (New Society)