Long-term assessment mechanism for risky capital is implemented, and A shares are expected to attract trillions of yuan in incremental funds.

The long-term assessment mechanism for insurance funds has been implemented. On July 11th, the Ministry of Finance issued a notice on guiding the long-term stable investment of insurance funds and further strengthening the long-term assessment of state-owned commercial insurance companies, promoting the comprehensive establishment of a long-term assessment mechanism of over three years for insurance funds. The new assessment indicators will be implemented starting from the performance evaluation of the year 2025. It is expected by the market that the implementation of the long-term assessment mechanism for insurance funds will bring about trillions of yuan of incremental funds to A-shares. Wang Lixin, the general manager of YinHua Fund, stated that expanding the scale of "long money" entering the market will bring large-scale incremental funds to the market in the short term; in the long term, it will significantly improve the market's fund structure, enhance market resilience and risk resistance, promote the formation of a value investing market atmosphere, and consolidate the good trend of A-share recovery and improvement.