Dai Xianglong, chairman of the National Council for Social Security Fund. [File photo]

Dai Xianglong, chairman of the National Council for Social Security Fund, suggested that a portion of local pension funds should be allocated for investment in securities. Dai made his comments at yesterday's International Social Securities Forum and his words echo a recent call made by Guo Shuqing, the new chairman of the China Securities Regulatory Commission, to invest pension funds in the domestic stock market.

Dai Xianglong said China should establish a pension system in line with the country's economy, in order to better address the long-term gap between spending and revenue in relation to pension funds.

The National Council for Social Security Fund has injected 10 billion yuan (US$1.6 billion) into the domestic stock market through other funds to lift weak investor sentiment, according to a report by Shanghai Securities News Tuesday.

China's business press carried the story above on Wednesday.