Pension fund to invest in stock market
China’s pension fund has been give the okay to invest in the stock market as the country faces the challenge of an aging population.
An official draft guideline released gives the fund the green light but restricts the maximum proportion of investment in stocks and equities to 30 percent of total net assets. Besides the stock market, the fund may invest in government and corporate bonds, major national construction projects and leading state-owned enterprises.
The move is to improve investment management and supervision of the social security fund and diversify investment channels, said a statement from the Ministry of Human Resources and Social Security and Ministry of Finance.