Improve market efficiency: the transparency and low rate of index funds help to improve market efficiency, reduce transaction costs and increase investor participation.The influence of the first batch of 85 index funds on market expansion is mainly reflected in the following aspects:The first batch of 85 index funds are included in personal pension investment. How will the expansion affect the market? Interpretation of many fund companies
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.2.1 Increased market liquidityAccording to official data, as of December 12th, the number of products that can be invested by individual pension in Public Offering of Fund has increased to 284, all of which have announced the establishment of Y share. This expansion is expected to have the following impact on the market:
Improve market efficiency: the transparency and low rate of index funds help to improve market efficiency, reduce transaction costs and increase investor participation.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 expansion