Cabinet Lets Pension Funds Be Invested in Domestic Stock Market

(Beijing) – China's government has said up to 30 percent of the country's locally managed pension funds can be invested in domestic stocks and stock-linked funds, a move that opened the doors of the Shanghai and Shenzhen bourses to hundreds of billions in extra capital.

The State Council, the country's cabinet, announced the decision in a regulation formally enacted August 23. The ceiling on stock investment is the same as what was proposed in a draft published in late June for feedback from the public.