China's National Social Security Fund could cause some downward pressure on China's stock markets, if a report in the Securities Times is correct. China's pension fund has requested that its fund managers reduce holdings in publicly listed domestic firms, according to the newspaper. This could result in share selling totalling 40-60 billion yuan (about US$5-8 billion), the Securities Times estimates. This could pressure China's domestic A-share market, if the reports are correct. This is unlikely to have a direct impact on H-shares listed in Hong Kong although it could indirectly pressure H-shares if Hong Kong takes its cues from China's domestic stock markets.
For a previous article on China's pension fund, go here.