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(China) Pension funds will start buying stocks in 2016
http://atimes.com/2015/10/pension-funds-will-start-buying-stocks-in-2016/Pension funds will start buying stocks in 2016
By Asia Unhedged on October 28, 2015
One of the big moves to stabilize the Chinese stock market during its summer rout was to allow pension funds to invest in stocks. However, it’s taken the government some time to figure out the best way to do this. On Tuesday, the Ministry of Human Resources and Social Security said the whole thing should be ready in 2016.
“We’ll push forward for a launch in 2016 and ensure local pension funds are in place for investment then,” said Li Zhong, spokesperson for the ministry, at a press conference, according to state-run paper People’s Daily
Currently, officials are researching the best way to transfer funds from local governments to the provincial level and allocating funds to authorized institutions for investment.
In Augusts, China’s cabinet, the State Council, finalized the guidelines that allowed pension funds to invest in higher-return products, including stocks and equities.