BEIJING, Jan. 24 (Xinhua) -- China will soon promulgate a new policy on corporate pension management, allowing funds to invest in the inter-bank bond market, according to sources with the Ministry of Labor and Social Securities.

    The current regulation issued in 2004 limits investments in fixed-time deposits, treasury bonds and other bonds by corporate pension funds to no higher than 50 percent of their net assets.

    Corporate pension funds can currently only buy bonds on the securities bourse. With the new policy, funds will be able to buy bonds on the inter-bank market.

    The ministry is also drafting regulations on the management of small and medium-sized company pension funds.

    Favorable tax policies for corporate pension funds are in the pipeline, sources with the ministry said.