China has announced its decision to allow local authority pension funds to enter the stock market for the first time.
The move is seen as an attempt to inject pension cash into the market to shore up prices and restore investor confidence.
Previously, Chinese pension funds could only invest in bank deposits and treasuries.
Under the new rules, pension funds can also be invested in convertible bonds, money-market instruments, asset-backed securities, index futures and bond futures in China, as well as the country's major infrastructure projects.
Experts expect investment from the country's pension fund in the markets to be between 200 and 400 billion yuan.
The amount of China pension fund is estimated to be around 4 trillion yuan in total.
For more on this, we are joined by CRI Financial Analyst Cao Can
