Ministry of Human Resources and Social Security, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, Circular on Expanding the Scope of Investment of Enterprise Pension Funds

(2) the percentage invested in bank term deposits of at least one year, negotiated deposits, sovereign bonds, financial bonds, enterprise (corporate) bonds, convertible bonds (including separately tradable convertible bonds), short-term financing bills, medium-term notes, universal insurance products, commercial bank wealth management products, trust products, infrastructure bond investment plans, specific asset management plans, bond funds, investment-linked insurance products (with a stock investment percentage not exceeding 30%), fixed return old-age pension products and hybrid old-age pension products may not, in total, exceed 135% of the net value of the entrusted investment assets of the investment portfolio; the balance of funds for bond repos may not exceed 40% of the net value of the entrusted investment assets of the investment portfolio on each trading day; and

(3) the percentage invested in stocks, stock funds, hybrid funds, investment-linked insurance products (with a stock investment percentage exceeding 30%) and stock type old-age pension products may not, in total, exceed 30% of the net value of the entrusted investment assets of the investment portfolio.

An enterprise pension fund may not directly invest in warrants, and warrants that are obtained in connection with investing in investment products such as stocks and separately tradable convertible bonds shall be sold within 10 trading days from the date on which such warrants are listed and begin trading (Article 2).

The issuers of commercial bank wealth management products, trust products and infrastructure bond investment plans in which enterprise pension funds may invest are limited to the following three types:

(1) commercial banks, trust companies and insurance asset management companies that have “enterprise pension fund manager qualifications”;

(2) subsidiaries with “enterprise pension fund manager qualifications” controlled by a finance group company and other subsidiaries of such finance group company that offer commercial bank wealth management products, trust products and/or infrastructure bond investment plans; and

(3) large enterprises that offer commercial bank wealth management products, trust products and/or infrastructure bond investment plans or a subsidiary controlled thereby (has already established an enterprise pension plan). Investment in such commercial bank wealth management products, trust products and infrastructure bond investment plans may be carried out only by the enterprise pension plan of the large enterprise itself or that of the subsidiary controlled thereby. Furthermore, investment matters shall be reported by the large enterprise to the Ministry of Human Resources and Social Security for the record (Article 6).

Related legislation: Circular on Issues Relevant to Old-age Pension Products for Enterprise Pensions, Mar 19 2013

clp reference:2410/13.03.19(1) issued:2013-03-19