As a major source of medium- to long-term capital, pension funds—with assets exceeding 7 trillion yuan—are set to undergo long-term performance evaluations. Guidelines for improving the long-term performance evaluation of pension funds have already been issued, and related work is currently underway. This move will effectively promote long-term investment by pension funds, and more medium- to long-term capital is expected to enter the market. According to reporters, pension funds previously generally implemented annual return rankings and absolute return assessments, with some even conducting quarterly or monthly performance rankings—a form of “competition”—and linking the ranking results to fund allocation. “Under this mechanism, investment decisions inevitably become short-term oriented to prevent the loss of fund shares,” said a representative from a pension fund management institution. (Securities Times)