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The expansion of individual pension system is an important step in the development of multi-level pension insurance system in China, aiming at meeting the challenges brought by the aging population. According to the latest policy, the personal pension system will be extended to the whole country on December 15th, 2024, and the first batch of 85 equity index funds will be included in the catalogue of personal pension investment products. The implementation background of this policy is mainly based on the following points:The expansion of individual pension system is an important step in the development of multi-level pension insurance system in China, aiming at meeting the challenges brought by the aging population. According to the latest policy, the personal pension system will be extended to the whole country on December 15th, 2024, and the first batch of 85 equity index funds will be included in the catalogue of personal pension investment products. The implementation background of this policy is mainly based on the following points:2.5 Investor Education and Financial Literacy Improvement

Diversification of investment styles: The diversified investment styles of index funds, such as broad-based index and dividend strategy index, provide investors with more asset allocation options and help to diversify investment risks.Market scale growth: The inclusion of index funds is expected to attract more individual pensions to participate, thus increasing market scale and improving market liquidity.2.1 Increased market liquidity

To 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.Improve market efficiency: the transparency and low rate of index funds help to improve market efficiency, reduce transaction costs and increase investor participation.2.3 Market stability improvement