BEIJING Nov 28 China should transfer a greater
proportion of shares in its listed state-owned firms to the
state pension fund, its securities industry watchdog chief said
Guo Shuqing, chairman of the China Securities Regulatory
Commission, suggested raising to between 30 and 50 percent the
proportion of state-owned firms' listed shares held by the
social security fund, from the current 10 percent.
"I suggest that we should transfer more state assets,
including some assets of state banks and state-owned insurance
companies, to the national social security fund," Guo told a
business forum in Beijing.
"In the past, we transferred 10 percent of their shares to
the fund, but I feel that we could raise the proportion to 30-50
percent, because the government should not hold so many
The National Social Security Fund managed assets worth 869
billion yuan ($139.66 billion) at the end of 2011, and plans to
expand its asset base to 1.5 trillion yuan by 2015, its chairman
said earlier this year.
Most shares of state-owned enterprises are now freely
floated after reforms several years ago, but are nonetheless
still held by other state-owned entities. Any transfer would
therefore be unlikely to affect the market price of shares.
China's stock market is in the doldrums, with the main index
in Shanghai hitting its lowest point in four years this
An increase in the pace of reform of China's financial
sector, including the rules for initial public offerings of
shares, is widely anticipated by investors after China's new
political leadership was unveiled earlier this month.
Guo said earlier this month that China plans a nearly
three-fold jump in quotas for the Renminbi Qualified Foreign
Institutional Investor (RQFII) scheme, which permits qualified
investors to channel offshore yuan funds into mainland stock and
The securities regulator also said that the quota for the
Qualified Foreign Institutional Investor (QFII) scheme - the
original, dollar-denominated program that allows institutional
investors to buy stakes in Chinese-listed stocks or bonds -
could be lifted if its current, 80 billion yuan ($12.81
billion)limit is reached.
($1 = 6.2223 yuan)
(Reporting By Aileen Wang and Lucy Hornby, Editing by Jonathan