An elderly woman enjoys leisure time with a nursing worker at the Tangshan Anxin Medical Pension Manor in Tangshan, Hebei Province, March 24, 2021. (Xinhua/Mu Yu)
BEIJING, June 27 (Xinhua) -- China Securities Regulatory Commission (CSRC), the country's securities regulator, invited from June 24 public opinions on its interim rules to permit private pension funds to invest in mutual funds, usually called publicly-offered securities investment funds in China, reported Xinhua Finance.
CSRC drafted the rules to press ahead with construction of the multilayer and multi-pillar pension insurance system in China, saying that the private pension funds here refer to qualified fund products that investors purchase through their own personal pension accounts.
Previously in late April, China rolled out a private pension scheme to complement the nation's current pension system, which allows Chinese citizens to contribute up to 12,000 yuan annually to individual pension accounts and capital in the individual pension accounts to be invested in wealth management products of banks, savings deposit, commercial pension insurance, and publicly-offered funds.
As the interim rules tell, pension target funds with no less than 50 million yuan assets by the end of the latest four quarters are mulled to be prioritized in inclusion into the private pension funds to be permitted to invest in mutual funds in the pilot period of the private pension scheme.
Upon the future full-scale application of the private pension scheme, stock fund, hybrid fund, bond fund, fund of funds (FOF) , and other fund products with steady investment style, clear investment strategy, sound long-term performance and compliant and stable operation are intended to be gradually included, according to CSRC.
To ensure the sustainability, safety and stability of private pension fund sales, the interim rules set relatively strict requirements over the operating conditions, financial indicators, corporate governance, internal control mechanism, and compliance management of related fund sales institutions.
Meanwhile, the interim rules require the eligible fund sales institutions to manage no less than 20 billion yuan of stock fund and hybrid fund by the end of the latest four quarters and individual investors shall at the same time hold no lower than five billion yuan of the stock fund and hybrid fund.
Media report quoting statistics with Wind said on Monday that there are 91 publicly-offered funds and FOFs that meet the requirement and most of them are managed by large fund firms.
According to CSRC, the opinion invitation will last for one month and end on July 24. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
