The Ministry of Construction has forbidden housing fund management centers to use any housing funds to purchase investments, to make stock purchases or any other form of equity participation.
According to regulations, the management centers must keep their funds in low-risk investments. As far as the government is concerned, that means the centers may only use the housing funds to purchase treasury bonds.
Also, any funds already put up by management centers in guarantee companies shall be withdrawn. Economic entities already set up shall disconnect completely from the management centers regarding institution, funds, finance, personnel and administration. No subsidiary or affiliated relations shall be maintained, the story said.
The notice requires that management centers completely extricate themselves from such arrangements before June 30, 2001, and withdraw all funds from investment and equity participation before Dec. 31, 2001, the story said.
(21DNN 03/13/2001)
