Low ROE could hurt China's funding of its huge pensions deficit

China has a problem. It has massive pension liabilities, estimated at $800 billion, and listed state owned enterprises which show dismal return on equity. The interim results of Chinese listed companies showed ROE of just 4.1% this year, down from 5% at the same point last year, according to research from emerging markets investment bank CLSA. "To provide for our liabilities, we would typically look at an investment yield of around 10% per year," commented Ron Ots…