Learn Chinese - SSF plans to invest 100b yuan

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SSF plans to invest 100b yuan

By Zi Ben (China Daily)
Updated: 2007-05-09 08:49

Social Security Fund, the nation's largest pension fund, will have more
than 100 billion yuan to invest in 2007, according to Xiang Huaicheng,
chairman of the National Council for Social Security Fund (SSF), the
China Economic Weekly reported.

"A good part of bank deposits will reach maturity, and together with new
funds coming in, the SSF in 2007 is expected to have over 100 billion
yuan to invest," Xiang said in an interview with the magazine.

The SSF will balance its investment portfolio among mainland's A shares,
Hong Kong's H shares and overseas stocks, he said.

"For A shares, the SSF prefers buying those with higher return and lower
risk, and we are actively engaged in applying for new shares in the
initial public offering process," Xiang said.

The fund had about $1.6 billion invested abroad by the first quarter of
this year.

Xiang said the SSF will strengthen its portfolio management for overseas
stock investment and risk management on foreign currency assets.

The SSF managed 149.9 billion yuan at the end of the 2006.

The pension fund had a total of 19.5 billion yuan in investment income
last year, representing a 9.3 percent yield, as the country's booming
Shanghai and Shenzhen stock exchanges contributed returns of more than 50
percent.

(China Daily 05/09/2007 page14)

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