The report of the Institute of Finance of the Academy of Social Sciences proposes to issue 2 trillion yuan of special government bonds to support the establishment of a stock market stabilization fund
On October 22, the Institute of Finance of the Chinese Academy of Social Sciences released the macro-financial analysis report "Pay equal attention to stock and increment: innovation in macroeconomic governance ideas" for the third quarter of 2024. The report recommends to improve the inherent stability of capital markets. First, accelerate the promotion of medium and long-term funds into the market, for example, moderately increase the proportion of insurance companies' funds investing in the stock market, and increase the proportion of local social security funds indirectly entering the market through the custody of the National Social Security Council. Second, strengthen the coordination and cooperation between the exchange facilities of securities, funds and insurance companies and the central bank's buying and selling of government bonds to achieve effective linkage between the money market and the capital market. The central bank can provide low-cost liquidity support to the stock market when necessary. The third is to issue 2 trillion yuan of special government bonds to support the establishment of a stock market stabilization fund, which promotes market stability by buying and selling low blue-chip leading stocks and ETFs.