17 February 2020

China to promote Guangdong pension investment model, paper says

Chinese regulators are interested in promoting the Guangdong pension investment model as they seek to enhance the yields of local pension funds in the country, the China Securities Journal reported Wednesday, citing unidentified sources. In March 2012, Guangdong province signed an agreement under which it entrusted 100 billion yuan (US$16.4 billion) of its pension fund to the National Social Security Fund (SSF). The money was parked in batches over a two-year period and was invested in different asset classes, with a greater share going to fixed-income products. According to data released by the Guangdong government, the 100 billion yuan funds realized an annualized yield of 6.73 percent over the past two years. The model is expected to be extended into the provinces of Shandong, Jiangsu and Zhejiang, the report said.

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