China’s pen­sion fund to flow into stock mar­ket

China Daily (Canada) - - NEWS CAPSULE -

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.

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