BEIJING, April 3 (Reuters) - China’s pension funds will likely have a funding gap in future due to growing obligations, Vice Finance Minister Wang Baoan told a press conference in Beijing on Friday.
China has struggled to keep its pension schemes adequately funded, with local governments and companies sometimes avoiding contributions.
At present, pensions funds have been restricted to investing only in high security, low yielding assets.
China’s cabinet said on Wednesday it is expanding the investment scope of the its national social security fund to allow it to buy more investment trusts, as well as corporate and local government debt. (Reporting by Koh Gui Qing; Editing by Richard Borsuk)