introduction of central bank- Top Reviews

Underdevelopment of the third pillar: Compared with developed countries, the scale of the second and third pillar pensions in China is relatively low, which needs to be promoted through policy guidance.The inclusion of index funds helps to optimize the structure of the capital market and increase the proportion of institutional investors. According to market analysis, the full implementation of individual pension will attract more institutional investors to participate in the market, thus improving the maturity and efficiency of the market. The increase of institutional investors will promote more rational and long-term value investment in the market and reduce irrational fluctuations in the market.2.3 Market stability improvement

2.1 Increased market liquidityTo sum up, the inclusion of the first batch of 85 index funds in the personal pension investment catalogue not only responded to the guidance of national policies, but also brought more incremental funds and investment options to the market, which is expected to have a positive impact on the expansion and stability of the market.Improvement of market stability: the entry of long-term funds into the market will help reduce short-term fluctuations in the market and improve market stability, which is of positive significance to the healthy development of the capital market.

1.2 Impact of market expansionThe aging of the population is increasing: the proportion of people over 60 years old in China continues to increase, and it is expected to reach 29.9% by 2040, which poses great pressure on the existing old-age security system.2.5 Investor Education and Financial Literacy Improvement