The expansion of individual pension system is an important step in the development of multi-level pension insurance system in China, aiming at meeting the challenges brought by the aging population. According to the latest policy, the personal pension system will be extended to the whole country on December 15th, 2024, and the first batch of 85 equity index funds will be included in the catalogue of personal pension investment products. The implementation background of this policy is mainly based on the following points:The first batch of 85 index funds are included in personal pension investment. How will the expansion affect the market? Interpretation of many fund companies2.2 diversification of investment style
2. The influence of index funds into individual pensions2.1 Increased market liquidity2.4 Optimization of capital market structure
Increase investment options: Incorporating index funds provides more investment options for individual pension investors, enriches the product line and meets the needs of investors with different risk preferences.After being included in the index fund, the funds in the individual pension account will enter the market as incremental funds, which will significantly improve the market liquidity. According to official data, as of December 12th, the number of Public Offering of Fund products that can be invested in personal pension has increased to 284, and it is estimated that the scale of new funds will reach several hundred billion yuan. This scale of capital inflow will provide stable liquidity support for the market and reduce the sensitivity of the market to short-term capital fluctuations.2. The influence of index funds into individual pensions