A statement by Zhang Zuoji, Minister of Labour and Social Security, has set out the government's policy for China's pensions and social security fund, the Financial Times said. The fund would be financed in three ways: by transferring state shares into the fund in order to accumulate the dividends paid by them; by selling state shares to foreign investors; and by transfers from central government. A ceiling of 50 per cent of the fund's total assets would be held in bank deposits and treasury bonds, while a further 10 per cent could be directly invested in enterprises and the remainder could be put into the stock market.
The minister added that foreign joint venture funds could help manage the social security fund, which amounted to Yn60bn, but gave no indication of when the rules would be changed to permit this.
You must log in to post a comment.