Local pension funds will be allowed to invest in stocks

Low returns on bonds and deposits, plus aging population, raise questions whether they will be able to pay obligations

China will likely officially allow pension funds to be invested in the stock market within this year, with analysts saying the move will help boost market confidence while the long-term impact on risks will only gradually appear in the coming years.

The first batch of provincial governments will be able to sign contracts with the National Council for Social Security Funds within this year, the Ministry of Human Resources and Social Security said earlier.