China's cabinet has announced that it will broaden the investment scope of the nation's social security fund.
The move will allow the fund to invest in local government bonds and corporate bonds.
The maximum share of investment on these two kinds of bonds will be raised to 20 percent from 10 percent.
The fund's direct equity investment will be allowed in centrally-administered enterprises and their subsidiaries, as well as credit-worthy private firms.
Meanwhile, the upper limit of the fund's trust loan investment will be raised to 10 percent from 5 percent, with orientations toward projects such as affordable housing and municipal infrastructure.
The government will also allow the fund to directly invest in interbank certificates of deposit and manage such investment as bank deposits.
For more on the overall health of China's social security fund,the Beijing Hour's Paul James earlier spoke with CRI's Financial Commentator Cao Can.
