Core Viewpoint - The Chinese government is actively promoting the entry of long-term funds into the capital market, supported by recent meetings of the State Council Financial Committee and the Central Political Bureau [1] Group 1: Policy and Regulatory Developments - The China Securities Regulatory Commission (CSRC) plans to advance investment reforms focusing on the high-quality development of public funds, the implementation of personal pension policies, the role of institutional investors, and the improvement of the market environment [1][4] - Since the introduction of the "Deep Reform 12 Articles" in 2019, several measures have been implemented to attract long-term funds, including promoting equity fund development and increasing the investment limits for insurance and pension funds [2][3] Group 2: Market Structure and Investor Composition - The proportion of professional institutional investors holding A-share market capitalization has significantly increased, reaching 24.6% by the end of 2021, up 6.6 percentage points from early 2019 [3] - Pension funds, such as social security and enterprise annuities, have shown increasing participation in the capital market, with the social security fund achieving an average annual return of 8.51% since its establishment [3] Group 3: Investment Opportunities - The current low valuation of A-shares presents a unique opportunity for value discovery, with the median valuation of all A-shares at 24 times earnings, the lowest level in nearly a decade [6] - Market analysts believe that the long-term growth trend of the Chinese economy remains intact, and the government is capable of balancing economic development with pandemic control, making it a favorable time to invest [6]