Recently, the provisional regulations regarding personal pension fund investments have been referred to the State Council after opinions on this subject were solicited. A source revealed that in the near future the pension fund could hold stakes in investment funds and financial bonds and be seen as an extension of any existing pension investment programs.

Based on current regulations, pension funds can only be funneled into bank deposits and state bonds.

To ensure healthy management and higher returns, provisional regulations have outlined a decision-making and risk-governance mechanism. They have also stipulated the lowest fee that should be paid for trusteeship and custody in order to circumvent vicious competition between investment trusts and custodian banks.

For more details, please read the full story in Chinese. (http://www.cs.com.cn/xwzx/02/200710/t20071024_1232842.htm)

(China.org.cn October 24, 2007)