Days ago, National Council for Social Security Fund announced that it got approved to invest China's PE market. This marks RMB-denominated PE market enters golden development period, insiders say.

Pursuant to relevant rules, the Social Security Fund can invest not more than 10% of its total assets into industrial funds and PE funds after it gets approved by the State Council. Sources say the Fund amounted to RMB516.2B at the year-end of last year. Therefore, over RMB50B from the Fund can be injected into industrial and PE funds.

The National Council for Social Security Fund has invested CDH Investments and Hony Capital. It may become the largest capital source for RMB-denominated PE funds.