: :inin Kyiv (EET)

China`s pension fund to flow into stock market this year

China`s massive pension fund may begin investing in the nation`s A-share markets this year, an anticipated move that will channel approximately 600 billion yuan ($92.28 billion) into the equity market and likely improve its liquidity, according to The People`s Daily, an official newspaper of the Chinese Communist Party.
The target date comes several months after China`s State Council published an investment guideline that would allow the country`s pension fund to invest in more diversified and riskier products, with the maximum proportion of investments in stocks and equities set at 30% of total net assets, according to the report.
China`s pension fund, which accounts for approximately 90% of the country`s total social security fund pool, had net assets of 3.98 trillion yuan by the end of 2015. By the end of last year, total investible pension fund nationwide reached approximately 2 trillion yuan, according to data from the Ministry of Human Resources and Social Security.
Researchers said it will take time for all of the investible portion of the pension fund to become fully injected into the equity market. Provinces that have already piloted their local pension funds to be invested in the equity market have reported positive yields.


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