China's pension fund misses out on millions from SOE stock placements

The private placement in Hong Kong of US$9.4 billion in stock from state-owned Citic Securities (600030.SHA, 6030.HKG) and Haitong Securities (6837.HKG, 600837.SHA) now awaiting approval from Beijing would deprive China’s national pension fund of millions of dollars, The Wall Street Journal reported. By making a private placement, in which shares are sold to no more than 10 investors privately, state-owned mainland firms can skirt a requirement to separately give the National Council for Social Security Fund stock valued at 10% of the amount they raise from public sales–shares that come out of the holdings of the state firms that control the company making the offering.