(Yicai Global) Oct. 13 -- China's finance and social security ministries have capped the amount occupational annuity fund's can invest in stocks, equity funds, mixed funds and equity pension products at no more than 30 percent of net assets under management.
Assets also should be limited to investments made within China, according to regulations published on the Ministry of Human Resources and Social Security's website yesterday.
Occupational annuity funds may also make bank deposits and invest in central bank bills, bonds, bond repurchases, financial bonds, corporate bonds, convertible bonds (including those with warrants), short-term financing bonds and medium-term notes with a credit rating above 'investment' grade, wealth management products, trust products, infrastructure debt investment plans and asset management plans for specific clients offered by commercial banks.
As a supplement to the retirement pension system, occupational annuity is defined as an employment benefit, rather than as a social or commercial insurance product. It is a security program set up by public bodies and their employees based on their financial status. All risks are borne by the institutions and the employees.