Let ChinaÆs SSF lock up shares, says funds CEO

The chairman of AmericaÆs oldest mutual funds company advocates allocating SOE shares to the Chinese social security fund.
Robert Pozen, chairman of Boston-based MFS Investment Management, believes Beijing should allocate 20% of the unsold shares in publicly traded state-owned enterprises SOEs to the National Council for Social Security Fund with an explicit lock-in period of as much as 20 years.

ôThere are three problems in China a big, unfunded legacy pension, the overhang of non-tradable shares and corporate governance issues,ö Pozen says. ôYou know the expression, to kill two birds with one stone Well IÆve got a stone that can kill all three.ö

He notes that the Chinese government has already implemented a policy of requiring 10% of proceeds from foreign initial public offerings to go to the Rmb201 billion $25.1 billion...
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