China paper warns against pension funds investment scheme

Beijing

A CHINESE state-run paper has warned against potential pitfalls from Beijing's moves to invest a portion of pension funds in capital markets, including the prospect that it could lead to graft and mismanagement.

The influential state-run newspaper, Global Times, said late on Tuesday in its English-language edition that announcement from the Ministry of Human Resources and Social Security's (MOHRSS) decision to proceed with the plan has triggered concerns over the management of the pension funds. "Managing the pension could be a problem since the funds are currently in the hands of local governments," Peng Xizhe, dean of the School of Social Development and Public Policy at Fudan University was quoted as saying.