Core Viewpoint - The Ministry of Finance and the State Taxation Administration announced tax exemption measures to support the transfer of state-owned equity and cash income to the social security fund, effective from April 1, 2024, which aims to enhance the net income of the receiving entities and encourage investment in high-growth assets [1][2]. Group 1: Tax Exemption Measures - Four tax exemption measures include: exemption from VAT on interest and income from financial products, non-taxable income from the transfer of state-owned equity, exemption from stamp duty on non-listed state-owned equity transfers, and a system of advance collection and refund for stamp duty on listed state-owned equity transfers [1][2]. - These measures are designed to improve the net income space for the receiving entities and significantly enhance their investment returns [2][3]. Group 2: Impact on Investment Strategy - The tax incentives lower the trial-and-error costs, encouraging entities to diversify their asset allocation towards higher-risk, higher-return investments such as equity assets, REITs, or cross-border investments [2][3]. - The transfer of state-owned capital to the social security fund is a crucial step in enhancing the sustainability of the basic pension insurance system, addressing the funding gap caused by policy changes [2]. Group 3: Policy Framework and Market Signals - The tax policy addresses the key issue of efficient operation post-transfer, forming a sustainable policy framework that includes the implementation plan, operational guidelines, and tax support [3]. - The measures send positive signals to the market, reinforcing expectations for long-term stability of the social security fund and encouraging investment in the capital market, thereby stabilizing market confidence [3].