China's Ministry of Labor and Social Security (MLSS) announced Tuesday that 37 firms have obtained right to manage corporate annuity fund, which is part of the country's insurance system for retirees.

This indicates that the government has finally found "reliable" finance handling companies for corporate annuity fund, which is regarded as "old-age guarantee money" for retirees.

Chen Liang, director of fund supervision department under the MLSS, said at the press conference that with the approval of administrative organizations for corporate annuity fund, its entry into the capital market is likely to start soon.

The entry of corporate annuity fund into the capital market is a "gradual process", which should be conducted in a "prudent" way. But the companies that have obtained the right to manage corporate annuity fund can start with market development and related work.

MLSS experts echoed his view, saying that corporate annuity fund will promote the development of capital market once the entry begins.

China's insurance system for retirees includes fund insurance insurance, corporate annuity fund and personal savings for old age.

According to China Insurance Regulatory Commission, corporate annuity is expected to have an annual increase of 100 billion yuan (about 12 billion US dollars). And the World Banks says that the gross corporate annuity is likely to top 1.8 trillion dollars by 2030,

Source: Xinhua