China is required to set up a new sovereign wealth fund, said Zheng Bingwen, head of the Latin America department of the Chinese Academy of Social Sciences, The Wall Street Journal reports. The fund will invest part of the country’s foreign-currency reserves. The investment will help to fund the country’s pension obligations, he added. The move will also help in alleviating foreign concerns about investment from sovereign wealth funds as investment by pension funds is more familiar to countries around the world.

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