The capital flows well. According to industry insiders, the pursuit of long-term value investment by pensions is conducive to reducing the fluctuation range of stock indexes and stabilizing the stock market.

The 217 semi-annual report released by Jiuyang Co., Ltd. and Zhenghai Magnetic Materials on the evening of August 18th shows that the basic endowment insurance fund 82 group bought 2.867 million shares of Jiuyang Co., Ltd. in the second quarter, accounting for .37% of the outstanding shares; 3.929 million shares of Zhenghai Magnetic Materials were bought, accounting for .53% of the outstanding shares. As a result, pensions first appeared in the A-share market.

Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, said in an interview with Securities Daily yesterday that the pension market will bring three major effects to the A-share market: first, the pension fund is a long-term fund, and

entering the market is conducive to leading the long-term investment concept of the stock market. Second, pension investment managers are rational investors, and entering the market is conducive to leading portfolio investment and value investment. Third, pension is a public fund, and its investment style has a very important demonstration and weathervane function.

By the end of June, eight provinces, autonomous regions and municipalities, including Beijing, Shanghai, Henan, Hubei, Guangxi, Yunnan, Shaanxi and Anhui, had signed entrusted investment contracts with the Social Security Fund Council, with a total contract value of 41 billion yuan, of which 172.15 billion yuan has been received and investment has started, and the remaining funds will be put in place in batches in accordance with the contract.

"The entry of pension into the market indicates that China's national pension system can be linked with the enterprise value in the capital market. Under the trend of A-shares returning to value investment, it means that the mechanism of realizing value linkage between good companies and national wealth is started, which is conducive to the long-term appreciation of pensions. " Wang Shengzhong, an expert in Longzhong think tank, told reporters yesterday.

Li Chao, chief macro researcher of Huatai Securities, also told reporters yesterday that the entry of pensions into the A-share market has two effects: First, after the entry of pensions into the market, long-term funds in the capital market will increase significantly, becoming the source of market value and implementing value investment, and guiding value investment; Second, after the pension entered the market, the ranks of institutional investors grew, reducing the volatility of the stock market and stabilizing the market.

"Generally speaking, pension, as a long-term capital to enter the market, pursues long-term value investment, which has a certain inhibitory effect on short-term speculative investment, thus helping to reduce the fluctuation range of stock index, curb the sharp rise and fall of stock index, and play a role in stabilizing the market to a certain extent." Li Chao pointed out.