The Ministry of Finance will transfer around RMB 115 billion ($16.1 billion) in state assets to the national social security fund, in the government’s latest effort to stave off a looming pension shortfall, said Caixin.
The transfer shows how keen the central government is to move forward on the policy, dating back to 2017, which aims to bolster China’s pension funds as the country’s population rapidly ages.
The ministry will transfer 10% of its shares of Industrial and Commercial Bank of China Ltd. and Agricultural Bank of China Ltd., two of the country’s largest state-owned banks by assets, to the National Council for Social Security Fund, the government body that manages the national social security fund, according to separate statements from each bank.
The banks’ shares being transferred were worth around RMB 115 billion at Wednesday’s closing prices. Under the plan, the ministry is also supposed to transfer a portion of its shares of other state-owned financial institutions to the fund.