Related News
Allow pension funds to invest in equities – NSSF head
By Feng Jianmin |
December 21, 2011, Wednesday
|
Online Edition
Online Edition
CHINA'S pension funds should be allowed to invest in the stock market to boost profitability and to avoid running into deficits in 20 years, head of the National Social Security Fund said yesterday.
"Most foreign pension funds in the world are allowed to invest in the stock market," Dai Xianglong, who manages China's US$130 billion social security fund, said at a forum in Beijing. "This can help preserve and increase the value of funds if we insist on investment with value and responsibility."
He said that the pension funds can make ends meet within the next 20 years, but may go into deficit later due to China's aging population.
Currently, pension funds in 14 of China's 29 provinces have already been in deficit, the China Academy of Social Sciences said in a report yesterday.
The comments were made amid debates whether China should allow its pension funds, which amount to nearly 2 trillion yuan and are now mostly lying in banks as deposits, to invest in the stock market.
China Securities Regulatory Commission Chairman Guo Shuqing made the proposal last week partly in a bid to boost China's already sluggish stock market, but the proposal was questioned by some economists as they doubt the transparency and profitability of the stock market.
Others claim that the investors of pension funds will be suspected of insider trading if their yields significantly outperform that of individual investors.
The benchmark Shanghai Composite Index has tumbled more than 20 percent this year, extending an annual loss of nearly 15 percent in 2010.
"Most foreign pension funds in the world are allowed to invest in the stock market," Dai Xianglong, who manages China's US$130 billion social security fund, said at a forum in Beijing. "This can help preserve and increase the value of funds if we insist on investment with value and responsibility."
He said that the pension funds can make ends meet within the next 20 years, but may go into deficit later due to China's aging population.
Currently, pension funds in 14 of China's 29 provinces have already been in deficit, the China Academy of Social Sciences said in a report yesterday.
The comments were made amid debates whether China should allow its pension funds, which amount to nearly 2 trillion yuan and are now mostly lying in banks as deposits, to invest in the stock market.
China Securities Regulatory Commission Chairman Guo Shuqing made the proposal last week partly in a bid to boost China's already sluggish stock market, but the proposal was questioned by some economists as they doubt the transparency and profitability of the stock market.
Others claim that the investors of pension funds will be suspected of insider trading if their yields significantly outperform that of individual investors.
The benchmark Shanghai Composite Index has tumbled more than 20 percent this year, extending an annual loss of nearly 15 percent in 2010.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
