Direct reporting network Beijing October 27th (Beijing Youth Daily) with the arrival of the fourth quarter, the long-awaited pension into the stock market also began a countdown. Said the Ministry of human resources and social security held in the day before the third quarter press conference, is currently part of the province has formed a trust investment plan, the next step will be the organization of the first principal provinces and the social security fund contract, and announced the first batch of pension fund management institutions. According to industry estimates, the basic pension fund for the first time into the market size of about 400 billion yuan, accounting for 1.1% of the market value of the stock market.

According to the Ministry spokesman Li Zhong released the news, commissioned by the investment contract department in conjunction with the Council of the Ministry of Finance and the social security fund together with the setting has been issued, will be organized during the first principal provinces and the Social Security Fund Council signed a contract. At the same time, the Social Security Fund Council will lead the Organization Review Committee, the first batch of pension fund management institutions, the official start of investment operations.

The fund industry generally believe that the pension fund will likely come from 21 family owned enterprise annuity management qualification of the company, and the investment management institutions of professional competence and performance in the past will become an important selection criteria. It is reported that after the hiring announcement the social security fund investment managers hiring domestic investment managers in the concrete standards of the social security trust fund investment managers including the scale of asset management fund management companies (including securities investment fund, specific customer asset management, enterprise annuity fund, QDII and QFII) not less than 20 billion yuan, paid capital of not less than 100 million yuan, at any time to maintain not less than the net assets of 100 million yuan and other hard targets.

According to the data released by the Department, this year 1 to September five social insurance fund total revenue of 3 trillion and 650 billion yuan, an increase of 10.1%; the total expenditure of 3 trillion and 170 billion yuan, an increase of 12.5%. According to Huatai Securities estimates, as of the end of 2015, according to the calculation of the upper limit of 30% of basic pension insurance fund, Chinese basic pension fund market funds the largest value of 1 trillion and 198 billion 110 million yuan, or about 12000 of the upper limit of the size of funds billion yuan. According to the Guangdong province has now commissioned by the social security fund investment management in Shandong province and provide funds accounted for the proportion of total balances (which was 19.5% in Guangdong, Shandong Province, 51.7%) estimates of all provinces and cities the average commission ratio is about 35.6%, so Chinese estimates the basic endowment insurance fund first into the market size of about 400 billion yuan the proportion of market capitalization accounted for 1.1%. 3

Editor: Xiao Shen