Official calls for sound investment mechanism for pension fund

China's top securities regulator Guo Shuqing has been asked to develop a more solid investment mechanism for the country's pension funds, as China continues to face an ageing population.

Guo, the chairman of China Securities Regulatory Commission, said he aims to focus on getting the pension structure in line with the very latest financial service practices and ensure maximum protection for all members.

"Without getting access to capital markets, the maintenance and appreciation of pension fund value cannot be properly achieved," he said.

Speaking at a forum in Shanghai on Friday, he noted the value of the country's total accumulated pension funds is actually relatively small and only accounts for less than 7 percent of the country's GDP.

He also predicted that by 2020, 12 percent of the population is expected to be older than 65, much higher than in other leading economies such as the United States, which will eventually put huge pressure on the social security system.

Guo's comments come after the Shanghai Stock Exchange released its official delisting regulations on Thursday.

Guo said as pension insurance development remains insufficient, and the investment channel remains narrow, the sector needs professional investment institutions to get more involved in the market and in ongoing financial system reform to ensure the security of people's pensions.

He also urged deeper reform of share issuing and delisting regulations, as well as improvement of supervision to avoid potential systems risk.

For a public company, if its net asset is less than zero for three consecutive years, compared with the "two years" in the draft, they should be automatically de-listed from the exchange, he said.

Meanwhile, the de-listing regulation has also been tightened for companies to re-list shares from the previous proposed rules of the draft, according to a statement from the Shanghai Stock Exchange.