Pension fund given more freedom on investments
The government has taken more steps to better manage its 1.02 trillion yuan ($166 billion) pension fund by allowing the fund to invest in the domestic and overseas capital markets. Draft proposals have been prepared and were sent out for public consultation fromWednesday. Among the suggestions are steps to ensure that the fund should be appropriately allocated to fixed-income assets, stocks and private equities approved by the State Council. The newsteps are being seen as the country’s attempt to ensure adequate investment of the fund through legislative means. Founded and managed by theNational Council of Social Security Fund in 2000, the fund has achieved annual investment returns of 7.95 percent. The newregulations also forbids any institution or individual to misappropriate or illegally invest the fund and violators will be subject to fines.