China’s securities regulator proposed rules to regulate private pension investment via mutual funds. Setting the criteria for qualified products and sales agents under a scheme; that will channel fresh savings into the country’s capital markets.
The draft rules, published by the China Securities Regulatory Commission (CSRC; came after Beijing in April launched a milestone private pension scheme to tackle challenges of aging population.
Under the scheme, eligible Chinese citizens can buy mutual funds; savings deposits and insurance products via their own individual pension accounts, potentially boosting a pension market that has lured foreign asset managers including Fidelity International and BlackRock.
Other types of retail funds with clear investment strategies and good long-term track records; will be gradually added to the eligibility list as the scheme expands, the CSRC said.
Currently, there are 91 pension target funds that meet the CSRC’s criteria, according to TF Securities.
In addition, fund managers and sales agents participating in private pension business must set up internal control systems, adopt long-term incentives, and ensure independent operation of the pension assets, according to the rules.