(Yicai Global) March 1 -- Just because China's pension funds started investing in financial markets does not mean the money will enter stock markets, which are one investment option, You Jun, vice-minister of the Ministry of Human Resources and Social Security, said at a State Council Information Office press conference today.
The National Council for Social Security Fund (NSFF), MoHRSS and Finance Ministry set up a joint work group after the State Council published the Administrative Measures for the Investment of Basic Pension Funds in 2015, You said.
The MoHRSS kicked off pension funds investment late last year. The first batch of seven provinces signed an agreement with the NSFF for the centralized asset management of pensions worth CNY360 billion (USD52 billion).
The MoHRSS has chosen pension fund management institutions including four custodian banks and 21 investment managers. Complementary policies, including information disclosure and performance evaluation systems, are being completed.
The implementation of the plan is a gradual process, where local authorities make plans based on local economic and social development as well as the balance and structure of funds, said You.
Pension investments are not implemented simultaneously in all regions. Institutions will decide when to enter the stock markets based on market conditions.