China’slocalpensionfunds（养老金）willlaunchafirstwaveofmakingprofitsinthenationalstockmarket（股市）bytheendofthisyearbeforeanageingpopulationbecomesadifficultyineconomy.Thegovernmenthasannouncedanam

题目详情

China’s local pension funds（养老金） will launch a first wave of making profits in the national stock market（股市） by the end of this year before an ageing population becomes a difficulty in economy. The government has announced an ambitious plan that could help local governments overcome record-low interest rates and reduce the Chinese stock market’s volatility（波动）.

The human resources ministry said that a number of local governments had moved money to the National Social Security Fund where managers have good reasons to make money in riskier programs including up to 40 per cent in stocks and stock funds. This first wave will release between Rmb200bn-Rmb400bn ($30bn-$60bn) according to analysts.

The government started drawing up plans for such moves to the NSSF in June last year and the expansion of the NSSF which held Rmb1.9tn in 2015 will increase its power in the national stock market reducing the influence of individual investors and probably creating a more stable flow of money into stock markets. If all provinces join the program that would mean up to Rmb2tn more could flow into stocks. “In theory it’s a good thing to do and should increase profits ” said Stuart Leckie Stirling Finance chairman who has advised the government on pension reform. “But it was mostly done to support the stock market. They’re doing something good for the wrong reasons.”

The Rmb5tn state pension funds managed by local governments are limited to making profits in safe programs such as bank deposits and government bonds. But these have had such low profits that local governments’ pension funds became less over the past decade at a time when more and more are nearing retirement.

The NSSF was founded in 2000 to help some provinces in the north-east but it has seemingly achieved an average profit of nearly 9 per cent per year over the past 15 years which matches the performance of the more experienced Canada Pension Plan Investment Board. But some economists believe the reforms are not enough to ensure the life quality of the old. “I no longer think the Chinese system can be reformed ” said Peter Diamond a Nobel Prize winner in economics who co-authored a book on Chinese pension reform. “It must be taken apart and built back from the beginning.”

24.What’s the purpose of the great governmental plan mentioned at the beginning?

A. To help the stock market go smoothly.

B. To make more profits for the central government.

C. To strength people’s confidence in pension funds

D. To increase the local bank interest rates.

25. What does “wrong reasons” in paragraph 3 actually mean?

A. The governments intended to increase the quantity of pension funds.

B. The governments originally wanted to help the old live longer.

C. The move of pension funds was to improve the stock market.

D. Pension funds may obtain much benefit from money moves.

26. What can we learn from the last paragraph?

A. The present reforms are of much practical use in bettering the life quality of the old.