China on Sunday published finalized rules that allow pension funds managed by local governments to invest in pension funds, according to Reuters. Under the new rules, these pension funds, with assets estimated at more than 2 trillion yuan, or about $322 billion, can invest up to 30% of their net assets in stocks, equity funds and balanced funds. They previously had been limited to bank deposits and Treasurys. A draft version of the rules had been published June 30. The Shanghai Composite index [cn:shcomp] plunged 11.5% last week and has lost 32% of its value from the record close hit June 12. However, it remains up 8.4% for 2015.
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From:: Stock Market News