Under discussion in Beijing is a plan to allow local governments to invest a portion of the...

|By:, SA News Editor

Under discussion in Beijing is a plan to allow local governments to invest a portion of the nearly $312B in pension funds in the stock market. Current rules allow the money to only be parked in bank deposits or government paper. Give the Chinese credit - stocks in Shanghai are near 3 year lows. Governments typically only get interested in buying equities during (and likely at the end of) major bull markets.