A-shares may get fillip as 21 companies receive nod to manage pension funds

The first batch of 21 Chinese pension-fund management institutions were approved on Tuesday afternoon. This move is expected to shore up the A-share market greatly.

The National Council for Social Security Fund released on its official website the list of approved companies, including 14 fund management companies, six insurance companies and one securities firm. Among these are China Asset Management Co Ltd, China Life Pension Co Ltd and CITIC Securities. Pension funds previously stayed in bank deposits or treasury bonds, with low yields.

"Based on related regulation, we selected the 21 qualified investment institutions after strict examination and approval processes," said the statement of National Council for Social Security Fund.