(ECNS) -- Allowing basic pension funds to enter stock markets is just one of many investment means to ensure safety and financial growth, said You Jun, Vice Minister of Human Resources and Social Security on Wednesday.
Launching pension insurance funds for investment doesn't mean the money will flow into the stock market,, You noted. Relevant institutions will choose a proper time for it, it was added.
Previously, Chinese pension funds could only invest in bank deposits and treasury bonds. By the end of 2016, the central government allowed pension funds valued at 360 billion yuan (.4 billion) from seven provinces and cities to be managed by professional investment agencies.
The new move was thought to help address problems of a rapidly aging society and potential pension fund shortfalls due to low yields.
China is still drafting policies on information disclosure, performance evaluation and other issues to support channeling of pension funds into stock markets, said You.
He added that pension fund investment is a gradual process and depends on the specific conditions of a region, so there's no one-size-fits-all approach.
As one form of investment, whether funds flow into the stock market is up to the institutes to decide, but the major concern is still safety as funds are a lifeline to retirees, it was explained.
"We will implement multiple measures to ensure the safety and yield of pension funds," You confirmed.