The Ministry of Human Resources and Social Security recently issued the Measures for the Supervision and Administration of Enterprise Annuity Funds (Draft) (“the Draft”) and sought public comments on the Draft. The Draft amended the currently effective Interim Measures for the Administration of Enterprise Annuity Funds in several important respects, as highlighted below:

Investment Composition

The Draft imposed new investment composition requirements for enterprise annuity funds (EAFs). Under the Draft, the upper limit for investment by EAFs in fixed income assets such as fixed deposits, government bonds, and enterprise bonds can be 95% of their portfolios, up from the current 50%, and the lower limit for investment in equities and other liquid assets can be as low as 5%, down from the current 20%.