Reforming to cope with excess capital
ANBOUND
Recently, China's Ministry of Human Resources and Social Security said that a number of local governments have transferred assets to the National Social Security Fund (NSSF). NSSF’s administrators have greater freedom to invest in riskier assets. This is consistent with the suggestion of Anbound that China’s domestic securities market should be invigorated to attract capital to enter the Chinese market, or to stabilize the outflow of domestic capital. China’s policy-making departments cannot just cope with short-term problems; instead they should systematically deal with the situation of excess capital from the strategic level. Anbound suggests that new markets should be created through systematic reform and market liberation to attract excess capital orderly access to various markets. Its core lies in reforming to regain the market’s and the capital’s confidence.