The China Securities Regulatory Commission (CSRC) has said that mutual funds with at least CNY50m ($7.48m) of assets over the past four quarters are eligible to participate in the country’s pilot private pension scheme.

The securities regulator has proposed rules to regulate mutual funds, setting the criteria for qualified products and sales agents under a private pension scheme that will channel fresh savings into the country’s capital markets, reported Reuters.

The draft rules, published on 24 June, follow the launch by the central government in April of a milestone private pension scheme to tackle the challenges of an ageing population.

Under the scheme, eligible Chinese citizens can buy mutual funds, savings deposits and insurance products via their own individual pension accounts, potentially boosting a pension market that has lured foreign asset managers including Fidelity International and BlackRock.

The proposed rules “have set a relatively high bar for products and institutions, and are designed to ensure safety of pension fund investment and protect investors’ interest”, the CSRC said in a statement on its website.

Other types of retail funds with clear investment strategies and good long-term track records will be gradually added to the eligibility list as the scheme expands, the CSRC said.

Currently, there are 91 pension target funds that meet the CSRC’s criteria, according to TF Securities.

In addition, fund managers and sales agents participating in the private pension business must set up internal control systems, adopt long-term incentives and ensure independent operation of the pension assets, according to the rules.

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