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24 Aug 2015
China's pension fund allowed to invest in stock market
FXStreet (Bali) - According to China's official news agency, Xinhua, with the story now circulating via BBC, China plans to let its state-control pension fund invest in the equity market for the first time.
As reported by the BBC: "Under the new rules, the fund will be allowed to invest up to 30% of its net assets in domestically-listed shares."
China main pension fund has a substantial amount f fire-power, currently holding 3.5tn yuan ($548bn), Xinhua said, BBC reports, in what represents yet another attempt by Chinese authorities to find a stabilizing mechanism to the ongoing rout in its local stick market.
"The fund will be allowed to invest not just in shares but in a range of market instruments, including derivatives. By increasing demand for them, the government hopes prices will rise", the BBC adds.
As reported by the BBC: "Under the new rules, the fund will be allowed to invest up to 30% of its net assets in domestically-listed shares."
China main pension fund has a substantial amount f fire-power, currently holding 3.5tn yuan ($548bn), Xinhua said, BBC reports, in what represents yet another attempt by Chinese authorities to find a stabilizing mechanism to the ongoing rout in its local stick market.
"The fund will be allowed to invest not just in shares but in a range of market instruments, including derivatives. By increasing demand for them, the government hopes prices will rise", the BBC adds.