China needs to promote pension investment to bolster its capital markets, Mr Fan Yifei, deputy governor of China’s central bank has said, according to a Reuters report.
Mr Fan said at a forum last weekend that reforms in the pension security system could strengthen China’s financial markets by promoting and developing the institutional investor base.
He said the pension system can help develop direct financing and would support the country’s “deleveraging” campaign, if long-term pension funds are matched with companies’ equity financing and long-term bonds.
China could further open up its financial markets by allowing more foreign financial institutions to participate in its pension investment management, he added.
The comments were made as Beijing vowed more measures to underpin its financial markets to help the world’s second largest economy.