Funds News
- Shanghai News
Date: 16-Mar-2007 Sources: (Shenzhen Daily)
SHANGHAI is setting up a new firm to manage about US$1.3 billion of pension and social security funds after a scandal over embezzlement of the money rocked the city last year, government and financial sources said.
The city government has appointed Ma Li, a vice president of Shanghai Pudong Development Bank, as chief coordinator to lead preparations for the launch of Yangtse Pension Insurance Co., the sources said Thursday.
Ma is vice president responsible for corporate and investment banking at Pudong Bank, in which Citigroup Inc. holds about 4 percent. She is expected to leave eventually to become chairwoman of the new pension company.
Most of the more than 10 billion yuan (US$1.29 billion) of assets held by the Shanghai Municipal Labor and Social Security Bureau would be transferred to the new company in stages, while the bureau would assume a regulatory role, the sources said.
The launch of Yangtse Pension will require final approval by agencies in Beijing as well as the State Council, they said.
Pudong Bank declined to comment, while a spokesman for the city government was not available for comment.
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