Latest News:  
Beijing   Cloudy/Overcast    12 / 5   City Forecast

People's Daily Online>>China Society

Capital markets to get pensions

By Gao Changxin (China Daily)

08:33, March 22, 2012

Guangdong can put 40 percent of local retirement funds into stocks in experiment

A Chinese province won permission on Wednesday to try out investing money from its largely unmanaged pension funds into the country's capital markets.

Analysts said that change could help the funds maintain their value and could have far-reaching consequences for domestic stock markets.

With the approval of the State Council, China's cabinet, the southern province of Guangdong has taken 100 billion yuan ($15.8 billion) from its pension funds and entrusted them to the National Council for Social Security Fund for two years. The council now manages social security funds that are raised from both sales of shares in State-owned companies and from central government grants.

In a statement posted on its website, the council said pension-fund investments will mainly go into fixed-income securities, which are largely risk-free in China, where there is a lack of high-yield bonds.

The assets most likely to be bought are government, commercial and financial bonds, but the National Council for Social Security Fund didn't rule out investing in the stock market. Equity investors in China have long wanted pension funds to invest into the country's stock market in the hope that doing so would push the market out of the doldrums.

The council's rules forbid it from putting more than 40 percent of its investments into equity investments, meaning that up to 40 billion yuan can go into the stock market.

The Shanghai Composite Index, which tracks many Chinese stocks, edged up 0.06 percent to close at 2378.20 points on Wednesday, helping to reverse a 1.38 percent slump on Tuesday.

【1】 【2】 【3】

Email|Print|Comments(Editor:王莉莉)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. China Int'l Low Carbon Industry Exhibition opens in Beijing

  2. Jiangsu police seizes imitation guns

  3. Traffic police performs stunts in Shenzhen

  4. Ancient Buddha statues unearthed in Hebei

Most Popular

Opinions

  1. Monk move in Nansha Islands new ploy by Vietnam
  2. Protectionism cannot save U.S. auto industry
  3. China continues to promote peace in Afghanistan
  4. Nuclear security cooperation
  5. Arms race will happen, but who to blame?
  6. Why China can't persuade N.Korea alone
  7. WTO's raw materials ruling reveals bias
  8. 21st Century classrooms needed for the future
  9. West's rare earth claim against China unreasonable
  10. Chinese economy vital for world

What's happening in China

Beijing public health hotline 12320 begins services

  1. UnionPay offers cash support service in Taiwan
  2. Apple app off market for prurient content
  3. Condom found in infant formula
  4. 60-year-old 'stud' told to repay friend's loan
  5. Plaster in water may be polluting river

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai