![FILE PHOTO:Fan Yifei, vice governor of the PBOC, attends a news conference during ongoing session of the NPC in Beijing](https://freeamericanetwork.com/wp-content/uploads/2020/01/pboc-deputy-governor-says-china-must-promote-pension-investment-to-bolster-capital-market.jpg)
FILE PHOTO: Fan Yifei, vice governor of the People’s Bank of China (PBOC), attends a news conference during the ongoing session of the National People’s Congress (NPC) in Beijing, China March 10, 2019. REUTERS/Jason Lee
January 11, 2020
SHANGHAI (Reuters) – China needs to promote pension investment to bolster its capital markets, the official Shanghai Securities News quoted Fan Yifei, deputy governor of China’s central bank as saying on a financial forum Saturday.
Fan said reforms in the pension security system could strengthen China’s financial markets by promoting and developing the institutional investor base.
He said the pension system can help develop direct financing and would support the country’s “deleveraging” campaign, if long-term pension funds are matched with companies’ equity financing and long-term bonds.
China could further open up its financial markets by allowing more foreign financial institutions to participate in its pension investment management, the deputy governor added.
The comments come as Beijing vowed more measures to underpin its financial markets to help the world’s second largest economy.
Early this month, China’s Banking and Insurance Regulatory Commission said in a document it would promote the conversion of household savings into long-term funds in the capital markets.
(Reporting by Luoyan Liu and Brenda Goh; Editing by Shri Navaratnam)