(Yicai Global) April 26 -- Pension fund investment should not be equated with ‘buying stocks,’ People’s Daily reported today.
Local governments in seven provinces and municipalities including Beijing and Shanghai signed pension fund investment trust agreements with the National Council for Social Security Fund at the end of last month, China’s Ministry of Human Resources and Social Security said at a press briefing yesterday. A total of CNY137 billion (USD19.9 billion) was moved into the account and is available for investment. Pensioners nationwide will benefit from growing wealth in their accounts.
The pension fund can only be invested in 20 domestic products including bank deposits, treasury bonds, and stocks, People’s Daily reported, citing the Basic Pension Fund Investment Administrative Measures that were issued by the State Council in 2015. Shares, equity funds, hybrid funds, and equity pension products may not make up more than 30 percent of the pension fund’s net asset value.