China’s pensioners to get customised mutual-fund products for stock investment
China’s pensioners will have a new channel to invest in the nation’s US$7.7 trillion stock market, as the securities regulator outlines requirements for asset allocations and holding periods for a new type of mutual fund serving retirees.
Such funds should adopt a strategy of “stable asset allocations” and pursue a “long-term increase in asset values”, the China Securities Regulatory Commission (CSRC) said in a guideline published on its website, inviting public feedback. The new, customised funds can invest in fund-of-funds products, with the maximum investment in balanced funds set at 80 per cent of the assets and 60 per cent for pure stock funds, according to the guideline.
Direct investment in equities should not exceed 30 per cent, it said.
The introduction of the new fund product may to some extent ease pressure on government pension payments, as big mainland cities such as Shanghai try to cope with the financial burden of an ageing society. It should also help add stability to the nation’s stock market by playing the role of a long-term holder of equities.
Read more @South China Morning Post
