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No Proposal for Cutting State-Owned Shares to Be Soon Launched
The proposal for cutting down the state-owned shares is still under discussion and will be launched in no short time, said officials from the Ministry of Labor and Social Security.
The Chinese government hopes to increase the funds for social security by reducing the state-owned shares.
At the Symposium on the WTO and China's Security Market, Hu Xiaoyi, director of social security center of Ministry of Labor and Social Security said that China is going to build up a sound system for social security by raising funds from multi-channels for pension insurance, and then to realize preserving and increasing the value by making use of the capital market.
According to Thursday's China Securities, though China's basic pension insurance funds register a current balance of 70 billion yuan, yet the system betrays some abnormal problems as being unable to make both ends meet or "blank account" for some individuals. Hu said that China should raise pension funds by various ways including governments' adjustment of budget expenditure, getting state-owned assets cashed and new tax categories to be launched in time. .
When talking of how to make use of capital market to improve and perfect pension insurance system, Hu pointed out that first, the capital market can provide the pension funds with a site for preserving and increasing value. Secondly, it has the advantage to raise social security funds through multi-channels, and thirdly, it can resort to various financial products of the market to lower the operation risk and obtain higher profit.
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