If it's RMB 200b, then it's about 4 days of turnover, at RMB 60b a day. Are u really excited ?
Billions may lock in on local stocksFriday, January 20, 2012
Local governments in China could plow up to
US$57 billion (HK$444.60 billion) into domestic stock markets under a proposal under consideration at the State Council, sources said.
If approved, the move would be a welcome boost for stocks as the Shanghai exchange has lost a quarter of its value in the past nine months and is trading 62 percent below its 2007 peak.
Mainland pension funds - mostly managed at the local level - have struggled to retain the value of their holdings as they can only put workers' savings in bank accounts and government bonds. That often means negative returns when adjusted for inflation.
The proposal could see
10-20 percent of provincial and large city pension fund assets gradually funneled into the stock market, a source said. This would be equivalent to
180-360 billion yuan based on an official's estimate of pension funds held at the local level.
The percentage allowed would vary by locality, said the source, close to the government.
A senior financial industry executive familiar with the proposal put the likely total figure lower, at
100-200 billion yuan. In December, Dai Xianglong, head of the National Social Security Fund, said the government was considering a plan to gather together part of the pension funds managed by provinces and cities and invest some of that in stocks.
China's local pension holdings total around 1.8 trillion yuan, Dai has said. The NSSF has been publicly exploring ways to boost returns on the country's pensions, an increasingly urgent need as China's 1.35 billion population ages.
Source: REUTERS
http://www.thestandard.com.hk/news_deta ... 20120&fc=8
It's all about "how much you made when you were right" & "how little you lost when you were wrong"