China’s pension fund may start buying stocks this year, China Daily reports

A Chinese day trader watches a stock ticker at a local brokerage house in Beijing, China.
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A Chinese day trader watches a stock ticker at a local brokerage house in Beijing, China.

China's massive pension fund is likely to start investing in the mainland's A-shares this year, a move that could see 600 billion Chinese yuan ($92.10 billion) moving into the country's equity markets, state-run China Daily reported on Monday.

Last August, China's State Council published investment guidelines allowing local pensions to invest in a wider range of riskier assets, with the maximum stocks and equities ratio set at 30 percent of total net assets.

The funds can only invest in treasuries and bank deposits now.

The move into equities would come after a turbulent start to the year in Chinese equities.

The benchmark Shanghai composite index is down 15.82 percent this year, having plunged at the start of 2016.

To read the full China Daily story, click here.

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