(ECNS) -- China's pension fund has no role or responsibility in stabilizing the volatile stock market, said Li Zhong, spokesperson for the Ministry of Human Resources and Social Security.
Li said speculation that the recent stock crash created conditions for favorable pension fund investment is simply inconsistent with reality since the fund is just one of many players in the capital market.
China's State Council published final guidelines for investment by the country's massive pension fund last August. It is allowed to invest in new products, including domestic stock markets, but restricts the maximum proportion of investment in stocks and equities to 30 percent of total net assets.
Li said that a task force of several departments is now preparing pension fund investment in stock markets by determining fund transfer procedures, accounting rules and risk management policies.
Substantial progress has been made in the process, with the next goal to ensure the fund is ready for investment in stocks and equities this year as scheduled.
Li added that there is no relationship between the pension fund and recent stock market fluctuations while the investment will be handled by authorized institutions according to market standards.
The fund will invest in about 20 types of products, including major projects, bonds, funds and shares in state-owned enterprises to gain long-term yields rather than in the stock market alone, it was said.
