China’s pension fund to flow into stock market
China’s massive pension fund may begin investing in the nation’s A-share markets this year, a move that will channel approximately 600 billion yuan ($92.28 billion) into the equity market and likely improve its liquidity.
The target date comes several months after China’s State Council published an investment guideline that would allow the country’s pension fund to invest in more diversified and riskier products, with the maximum proportion of investments in stocks and equities set at 30 percent of total net assets.
China’s pension fund, which accounts for approximately 90 percent of the country’s total social security fund pool, had net assets of 3.98 trillion yuan by the end of 2015. By the end of last year, total investible pension fund nationwide reached approximately 2 trillion yuan.