China's social security fund will double its investments abroad
to US$1.6 billion in the first quarter seeking to boost returns and
cover more retirees, the chief pension administrator announced.
"We hope that returns will be reasonable enough to offset the
rising exchange rate," said Xiang Huaicheng, chairman of the
National Council for Social Security Fund (SSF).
The fund had US$850 million invested abroad at the end of 2006,
with 80 percent of it in stocks, earning about 2.02 percent on the
investment, said fund spokesman Li Keping.
China's pension fund received 19.5 billion yuan in investment
income last year, representing a 9.3 percent yield, Xiang said, as
the country's booming Shanghai and Shenzhen stock exchanges
contributed returns of over 50 percent.
Including another 44 billion yuan in unrealized gains in 2006,
the fund posted a return of 29 percent last year, Xiang said,
whilst its domestic investments returned 3.1 percent in 2005.
Though half of the investment income was generated from the
stock market, Xiang said the SSF will not increase the proportion
of equities, despite a market soaring over 130 percent last
year.
(China Daily January 26, 2007)