(ECNS) -- Twelve local governments have entrusted a total of 475 billion yuan ( billion) in pension funds to the National Council for Social Security Fund (NCSSF) for more diverse investments, of which 306.65 billion yuan had already been put into use.
The Ministry of Human Resources and Social Security said Beijing, Shanxi and Shanghai were among 12 provincial-level regions to sign the contract worth 475 billion yuan by the end of March.
As the financial lifeline for China's elderly, the flow of that investment has always been a concern among the public. The ministry has vowed to improve the supervision and management in investment, saying more efforts will be made to control the risks in investing in the financial markets.
The ministry also said China is in full swing to support provinces and cities to entrust the NCSSF to manage their pension funds as the country tackles the challenge of an aging society.
Pensions in China are traditionally held by banks or used to purchase treasury bills, but the annual yields were below the market average and were often depreciated due to inflation. In contrast, the NCSSF invests in a variety of financial products, including bonds and stocks.
At the press conference on Friday, the ministry said it would implement a regulation over fund management of occupational pension for government employees.