Reuters launches China pension performance index http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-03-31T031726Z_01_SHA215247_RTRUKOC_0_US-FINANCIAL-CHINA-REUTERS.xml&archived=False
Thu Mar 30, 2006
SHANGHAI (Reuters) - News and information provider Reuters Group Plc (RTR.L: Quote, Profile, Research) launched a benchmark index on Friday aimed at helping firms track China's developing pension industry.
The Reuters China Pension Index measures the investment performance of China's Enterprise Annuity system, which consists of voluntary contribution pension plans.
Reuters said it introduced the index as China continues to overhaul the pension industry and diversifies its national pension fund, allowing a wide range of investments.
"As China sees pension reform as key to long-term growth, market participants foresee a rapid growth in the enterprise annuity arena," Alex Hungate, Reuters Asia managing director, said in a statement.
Reuters said the enterprise annuity market in China was expected to grow to $60 billion in the next five years from about $11 billion now.
China licensed 29 financial institutions to manage corporate pensions last August, including firms part-owned by Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research), Fortis Bank (FOR.AS: Quote, Profile, Research)(FBVA.AS: Quote, Profile, Research), Morgan Stanley (MS.N: Quote, Profile, Research) and Bank of Montreal (BMO.TO: Quote, Profile, Research).
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