The first investments from China's national welfare fund into domestic stock markets will soon be made, now that the fund management companies that will handle the business have been selected, according to a report in the Financial Times. The six nominated companies were chosen from a list of 10 that submitted tenders last year.
The initial investments will total Yn14bn. Under the rules of the fund, which totalled Yn124bn at the end of 2002, up to 40 per cent can be invested in shares. Current capitalisation of tradable shares is around US$170bn, with around two-thirds of shares still owned by the state.