Capital markets to get pensions.docVIP

Capital markets to get pensions Updated: 2012-03-22 07:54 By Gao Changxin in Shanghai (China Daily) Investors watch stock prices on Wednesday. Guangdong province has taken 100 billion yuan ($15.8 billion) from its pension funds and entrusted them to the National Council for Social Security Fund for investment in the capital market. [Photo / China Daily] Guangdong can put 40 percent of local retirement funds into stocks in experiment? A Chinese province won permission on Wednesday to try out investing money from its largely unmanaged pension funds into the countrys capital markets.?（资本市场） Analysts said that change could help the funds maintain their value and could have far-reaching（深远的；广泛的） consequences for domestic stock markets.?（股票市场） With the approval of the State Council, Chinas cabinet, the southern province of Guangdong has taken 100 billion yuan ($15.8 billion) from its pension funds and entrusted them to the National Council for Social Security Fund for two years. The council now manages social security funds that are raised from both sales of shares in State-owned companies and from central government grants.? In a statement posted on its website, the council said pension-fund investments will mainly go into fixed-income （固定收入）securities, which are largely risk-free（无风险的） in China, where there is a lack of（缺少，没有的） high-yield bonds.? The assets most likely to be bought are government, commercial and financial bonds, but the National Council for Social Security Fund didnt rule out（排除；取消；划去） investing in the stock market. Equity investors（股权投资者） in China have long wanted pension funds（养老基金） to invest into the countrys stock market in the hope that doing so would push the market out of the doldrums.? The councils rules forbid it from putting more than 40 percent of its investments into equity investments, meaning that up to 40 billion yuan can go into the stock market.? The Shanghai Composite Index, which tracks many Chinese stocks, edged up 0.06 percent