China pension assets worth 1.9trillion yuan: minister

BEIJING: China has 1.9 trillion yuan ($301 billion) in outstanding pension assets, but 13 of the country's 31 provinces would be unable to meet payments to pensioners without central government aid, the labour and social security minister said on Wednesday.

Expectations are running high that Beijing is about to unveil landmark reforms in its pensions sector to allow funds managed by local governments more freedom to invest in a wider range of assets, including domestic equities.

Yin Weimin, officially titled Minister of Human Resources and Social Security, told a news conference on the sidelines of the annual meeting of parliament that the ministry is thinking of new ways to "ensure and improve" the value of pension funds that companies and individuals pay into.

He said the investments of such funds would be less aggressive than the National Social Security Fund (NSSF).

The NSSF manages funds allocated by the central government to the country's patchy pension system, but company and individual pensions are usually controlled by municipal or provincial governments.

Copyright Reuters, 2012