SOEs could shore up pension fund
25 October 2006
The government may transfer shares in state-owned companies to the national pension fund, the Financial Times reported. The move could mark the beginning of widespread management changes within the country's public sector. The plan, currently in the consultation phase, would see 10% of any domestic share issue by state-owned companies channelled into the pension fund. The plan would both inject cash into the state pension fund - which needs the money throughout the next decade as China's population is aging rapidly - and would also put pressure on company managers since the pension fund would be more concerned about share performance than other areas of government. The State-Owned Assets Supervision and Administration Commission are running the consultation.