China's corruption watchdog holds gathering with national pension fund
Recently China’s corruption watchdog has met fifteen newly appointed executives at the national social security fund, making them to adhere to the national law and also maintain discipline and moral standards, as states the Central Commission for Discipline Inspection on its website.
The gathering arose as regulators need to clear the way for the country’s National Council for Social Security Fund in order to invest in the stock market for the first time.
A nation guideline to regulate management of pension funds, that earned more than 1.5 trillion yuan at the end of 2014, actually went into effect on May 1.
China’s pension funds have normally put their assets into bank deposits or low yielding treasury bonds, however, many experts have raised worries that low rates of return will hamper China’s ability to provide substantial social security benefits to a rapidly aging population.
The country’s financial regulators have been under heavy pressure since stock markets almost collapsed in mid-June last year following a long leap.