The Best of Chinese Commentators

Stock, lock and China's pension fund

  • Published 25 Jun 2009

Analysts discuss the implications of a recent move for mainland-listed state-owned enterprises to transfer stock to the National Council for Social Security Fund.

The government announced on June 19 that every state-owned company that has listed in the Chinese mainland since June 2006 must transfer stock equal to 10% of the shares offered to the National Council for Social Security Fund (SSF), China's pension fund. A total of 826 state-owned institutions will be required to transfer shares, valued to be around Rmb 70bn ($10.24bn, €7.27bn, £6.19bn) to the fund under the new policy, which will also apply to future listings. Shares transferred to the fund will be covered by a three-year lock-up on top of any pre-existing lock-ups.

Issue icon

Latest Issue

12 Aug 2010

Browse the archive

Get two weeks free trial Subscribe now to access all of China Confidential

China Confidential Funds

China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

Find out more