Recently, the provisional regulations regarding personal pension
fund investments have been referred to the State Council after
opinions on this subject were solicited. A source revealed that in
the near future the pension fund could hold stakes in investment
funds and financial bonds and be seen as an extension of any
existing pension investment programs.
Based on current regulations, pension funds can only be funneled
into bank deposits and state bonds.
To ensure healthy management and higher returns, provisional
regulations have outlined a decision-making and risk-governance
mechanism. They have also stipulated the lowest fee that should be
paid for trusteeship and custody in order to circumvent vicious
competition between investment trusts and custodian banks.
For more details, please read the full story in Chinese. (http://www.cs.com.cn/xwzx/02/200710/t20071024_1232842.htm)
(China.org.cn October 24, 2007)
