Latest News:  
Beijing   Sunny    2 / -8   City Forecast

People's Daily Online>>China Society

China to step up local pension fund management

(Xinhua)

18:47, December 21, 2011

BEIJING, Dec. 21 (Xinhua) -- China is likely to improve its management over the country's 1.5 trillion yuan (236.2 billion U.S. dollars) of local pension fund next year to maintain its value, said social security officials.

Dai Xianglong, chairman of the National Council for Social Security Fund (NSSF), said the government is planning to collect part of the pension funds managed by local governments and put them into the capital market, Wednesday's China Securities News reported.

But Dai stressed that such investment should be long-term, responsible and value-oriented, as equity investment could be risky.

The Chinese government is likely to establish an investment management company to handle basic operation of the pension fund, according to a report on China's pension management from the Chinese Academy of Social Sciences released Tuesday.

As part of the nation's social security fund, China has a total of 1.5 trillion yuan pension fund managed by local governments as of 2010, which is only allowed to make bank deposits or buy government treasury bonds, according to government regulations.

Therefore, the fund's average annual rate of return stood at less than two percent, far less than China's annual inflation rate, Dai said.

Chen Liang, an official in charge of social security fund supervision with the Ministry of Human Resources and Social Security (MHRSS), said Chinese regulators are working on new rules and regulations on pension fund management, which are likely to be issued next year.

Chen said there should be clear rules on details of the local pension fund management, including market monitoring, legal responsibility, fund operation and investment options.

The injection of fund would also play a positive role in the development of the capital market, but it should not be seen as a move to prop up the market, he said.

The pension fund investment will target long-term profit, Dai said.

 
 
 
 
We Recommend
 
 
 

Email|Print|Comments(Editor:燕勐)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Fire-fighting recruits of Shanxi in training

  2. Largest 'comfort station' in Asia crumbling

  3. Red lanterns adorn historic commercial area

  4. Jiaxiang Wu Family Shrines Stone Carving

Most Popular

Opinions

  1. Euro depreciation affects Asian manufacturing
  2. Japan's purchase of Chinese bonds to benefit both
  3. To whom does Pacific Century belong?
  4. US media hypes 'cyber Cold War'
  5. Farmers find city life unfair: report
  6. Soccer bribe trials chance to clean up sport's legacy
  7. Euro zone makes progress in systemic reforms
  8. Weibo regulations a step on the right path
  9. Real names on Weibo points to progress
  10. China's foreign policy not a matter of tough vs. soft

What's happening in China

Second duty-free shop opens in Hainan

  1. Taobao remains on US market 'blacklist'
  2. Lenovo unveils Ultrabook sub-brand
  3. PBOC stresses stable growth
  4. Life measures improving in China
  5. Talks help resolve Shanwei land dispute

PD Online Data

  1. Traditional Mooncakes
  2. About Mooncakes
  3. History of Mooncakes
  4. Modern Mooncakes
  5. Legends of Mid-Autumn Festival