To create an environment facilitating value investment and long-term investment in the whole market, a total of 66 institutions, including the Shanghai Stock Exchange and other asset management institutions and universities, jointly released the Initiative on Value Investment and Long-term Investment in Capital Market. Marking the 4th “May 15 Day for Protecting Investors’ Rights”, the release of the Initiative also aimed to further guide the establishment of the concepts of value investment and long-term investment in the whole market, give full play to the important role of institutional investors in maintaining market stability, serving national strategies and promoting common prosperity, and improve the sense of security, fulfillment and happiness among small and medium-sized investors in securities investment.
The ten points in the three-part Initiative, namely, preface, text and conclusion, put forward relevant proposals to investors and asset management institutions in the three areas of investment philosophy, institutions’ conduct, and market environment, with the proposals summarized as “four adheres”, “three should-dos” and “three actively-dos”. In the future, we will continue to track and assess the practice of value investment and long-term investment in the capital market.
Let us jointly uphold the philosophy of value investment and long-term investment, and contribute to the promotion of high-quality development of China’s capital market!
The full text of the Initiative is as follows:
Initiative on Value Investment and Long-term Investment in Capital Market
May 15, 2022 Shanghai
Shanghai Stock Exchange
Initiative
To investors and asset management institutions:
Value investment and long-term investment are the cornerstones for the stable and healthy development of the capital market. In order to further guide the establishment of the concepts of value investment and long-term investment in the whole market, give full play to the important role of institutional investors in maintaining market stability, serving national strategies and promoting common prosperity, and effectively improve the sense of security, fulfillment and happiness among small and medium-sized investors in securities investment, we hereby jointly propose the following ten-point initiative.
1. Adhere to the concept of value investment, attach importance to fundamental analysis, conduct rational and compliant transactions, and avoid blindly following trends or speculating.
2.Adhere to the concept of long-term investment, view market fluctuations rationally, and avoid excessive trading due to short-term ups and downs.
3. Adhere to the concept of green investment and responsible investment, actively fulfill social responsibilities, and proactively serve major national development strategies.
4.Adhere to the correct concept of investment and performance, establish a long-term assessment mechanism, and avoid one-sided pursuit of short-term ranking of performance or scale.
5. Asset management institutions should consciously abide by investment contracts, align with performance benchmarks, and maintain a stable style.
6. Asset management institutions should actively improve their capabilities of investment research, and develop more products suitable for value investment and long-term investment to meet the needs of investors.
7. Asset management institutions should focus on the interests of clients, properly guide investors’ subscription and redemption operations, and strengthen their acceptance of value investment and long-term investment.
8. Actively bring the role of professional investors into full play, promote the improvement of the listed companies’ governance, and guide listed companies in rewarding shareholders in various forms such as dividends and share repurchases.
9. Actively give play to the leading and demonstration effect of evaluation and its guiding role for public opinions, and boost the transformation of the investment style of the whole market to value investment and long-term investment.
10. Actively carry out investor education, and guide the whole market in establishing the concept of rational investment and the reasonable expectation for investment returns.
Let us jointly continue to uphold the philosophy of value investment and long-term investment, and contribute to the promotion of high-quality development of China’s capital market!
Initiators (66 in total, in no particular order)
Shanghai Stock Exchange National Council for Social Security Fund
ICBC Wealth Management Co., Ltd. CCB Wealth Management Co., Ltd.
ABC Wealth Management Co., Ltd. BOC Wealth Management Co., Ltd.
Ping An Wealth Management Co., Ltd. CIB Wealth Management Co., Ltd.
Ping An Asset Management Co., Ltd. Taikang Asset Management Co., Ltd.
China Pacific Asset Management Co., Ltd. Taiping Asset Management Co., Ltd.
Xinhua Asset Management Co., Ltd. PICC Asset Management Co., Ltd.
China Life Asset Management Co., Ltd. Changjiang Pension Insurance Co., Ltd.
Bosera Asset Management Co., Ltd. Fullgoal Fund Management Co., Ltd.
ICBC Credit Suisse Asset Management Co., Ltd. GF Fund Management Co., Ltd.
China Asset Management Co., Ltd. China Universal Asset Management Co., Ltd.
Harvest Fund Management Co., Ltd. Bank of Communications Schroders Fund Management Co., Ltd.
China Southern Asset Management Co., Ltd. Penghua Fund Management Co., Ltd.
Foresight Fund Management Co., Ltd. Aegon-Industrial Fund Management Co., Ltd.
E Fund Management Co., Ltd. China Merchants Fund Management Co., Ltd.
Zhong Ou Asset Management Co., Ltd.
GF Securities Co., Ltd. Guotai Junan Securities Co., Ltd.
Haitong Securities Co., Ltd. Huatai Securities Co., Ltd.
China International Capital Corporation Limited CITIC Securities Co., Ltd.
BOC International (China) Co., Ltd. Shanghai Shenyin Wanguo Securities Research Institute Co., Ltd.
Shanghai Dongfang Securities Asset Management Co., Ltd. CMS Asset Management Co., Ltd.
Shanghai Gaoyi Asset Management Partnership (Limited Partnership) Shanghai Greenwoods Asset Management Co., Ltd.
Guanghua School of Management, Peking University School of Finance, Dongbei University of Finance and Economics
School of Management, Fudan University Business School of Hunan University
School of Economics and Finance, South China University of Technology School of Economics and Management, Nanchang University
School of Management and Engineering, Nanjing University School of Finance, Nankai University
School of Economics and Management, Inner Mongolia University PBC School of Finance, Tsinghua University
School of Management, Xiamen University School of Finance, Shanghai University of Finance and Economics
School of Economics, Shanghai University School of Finance, Shanghai University of International Business and Economics
Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University School of Economics and Management, Tongji University
Economics and Management School, Wuhan University School of Economics and Finance, Xi’an Jiaotong University
School of Finance, Southwestern University of Finance and Economics School of Economics, Zhejiang University
Business School, Central South University Lingnan (University) College, Sun Yat-sen University
Business School, Central University of Finance and Economics
May 15, 2022
