State Council and Public Opinion

pension fund: The fund will also be used to participate in major projects and purchase shares in state-owned enterprises to gain long-term yields, according to Xinhua China. Provincial-level governments determine the capital amount to be invested first and only the institutions authorized by the State Council can operate such capital. The final plan, released after considering public opinion, allows the pension fund to be invested in new products, including domestic stock markets, but restricts the maximum proportion of investments in stocks and equities to 30 percent of total net assets. All details shall be reported to the Ministry of Human Resources and Social Security and the Ministry of Finance. The move is intended to create more value for the massive fund, which was previously parked in banks or invested in treasury bonds with low yields, a condition that has long spurred calls for changes as China faces a huge challenge in caring for its increasing elderly population. The guideline will be effective since the day it published. (news.financializer.com). As reported in the news.