On August 18, Joyoung released its semi-annual report, which showed that Chinese pension fund 802 portfolio was on its top 10 floating shareholder list. It's the first time that pension funds directly buy A shares on the secondary market.

Pension fund and social security fund both are run by The National Council for Social Security Fund (SSF). But Lou Jiwei, current chair of SSF said return of pension fund is expected to be lower than that of reserve fund due to demand of higher liquidity.

The NBD reporters noticed that what they cash on are not blue chips, but shares of small-and-medium enterprises instead.

Yang Delong, chief economist of First Seafront Found said, pension fund is critical for the stable development of the A-share market. It shows that pension funds favor good-performed private shares, which might be a signal of market trend.

As of the end of June, 8 provinces and municipalities including Beijing, Shanghai and Henan have signed designated investment agreements with SSF. The amount of fund has totaled 410 billion yuan (61.5 billion U.S. dollars), of which 172.15 billion yuan (25.8 billion U.S. dollars) has been received and used for investment. And the remaining sum will be in place in stages.

Email: tanyuhan@nbd.com.cn