On August 23rd, 2015 China announced they would be allowing pension funds to invest in the domestic stock market for the first time ever. [1] Funds were &quot;allowed&quot; (why would they want to invest in a falling, low-confidence market?) to invest up to 30% of net assets. Clearly the government wanted to allow liquidity to flow into the market and calm investors, and it seems to have worked for ~6 months.<p>So now the average Chinese consumer will be double-hosed: once over by losses to their personal retail brokerage account, and again by losses sustained by their pension funds.<p>Hopefully enough Chinese consumers made enough money from the crazy ride up on the market that they cashed out periodically and invested in sensible hard assets such as homes and cars. Because the correction will probably be very painful.<p>[1] <a href="http:&#x2F;&#x2F;www.theguardian.com&#x2F;world&#x2F;2015&#x2F;aug&#x2F;23&#x2F;china-to-allow-pension-fund-to-invest-in-stock-market-for-first-time" rel="nofollow">http:&#x2F;&#x2F;www.theguardian.com&#x2F;world&#x2F;2015&#x2F;aug&#x2F;23&#x2F;china-to-allow-...</a>