Chinese policy documents urge pension funds to pursue “long money, long
investments,” citing decades‑ahead payout obligations and the theoretical
capacity to tolerate higher equity volatility to earn long‑term equity premia.
The guidance prioritises reforming measurement: accelerate establishment of
long‑cycle assessment frameworks and embed cross‑cycle returns and risk control
into fund evaluations. It calls for supporting measures and a steady expansion
of pension investment scale and channels; under strict equity‑allocation caps,
funds should optimise asset mixes and raise equity exposure, with emphasis on
national strategic emerging industries. Authorities will also encourage pension
participation in listed‑company governance and directed placements and push for
improved dividend mechanisms so pension funds share more of the real‑economy’s
growth returns.
