China may stop allowing local governments to manage pension funds, shifting to a market-based System overseen by the central government, a report said. China has about 100 billion yuan (US$12 billion; euro 10 billion) invested in local pension funds outside the national social security System. Those funds are controlled by local officials, who have in some cases put the money into real estate projects and other risky Investments. The Ministry of Labor and Social Security may issue rules early next yearthat would shift management of those funds to central control, while entrusting the independent fund managers to handle Investments, the state-run newspaper Shanghai Daily cited a ministry official, Chen Liang, as saying.
China may centralize pension funds

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