China's Social Security Fund
racked up investment gains of 61.9 billion yuan (US$7.94 billion)
last year, at a yield of 29 percent.
Capital investments excluding strategic equity
investment income contributed 42.4 billion yuan, said Xiang
Huaicheng, chairman of the National Social Security Fund
Council.
The Fund's long-term equity investments include 10
billion yuan in the Bank of Communications, 15 million euros in
China-Belgium Fund, 10 billion yuan in the Industrial and
Commercial Bank of China, 10 billion yuan in the Bank of China and
one billion yuan in the Tianjin-based Bohai Industrial
Fund.
Xiang did not disclose when these investments were
made nor how much had been earned.
To secure itself against losses, the pension fund
limits stock market investments to 30 percent of holdings even
though the stock market contributed 50 percent of last year's
income, said Xiang.
Statistics show the Fund's stock investments account
for approximately 24 percent of total holdings.
The current bullish stock market may see the value of
the Fund's shareholdings increase as a percentage of total assets,
said Xiang.
He also said the fund launched its first overseas
investment in December 2006 and the US$850-million investment had
so far yielded 2.02 percent.
The Social Security Fund was established in 2000 as
part of China's effort to build a national social security network
to cope with the growing needs of its aging population.
Total assets of the fund reached 255.4 billion yuan at
the end of September last year, compared with 211.78 billion yuan
at the end of 2005.
(Xinhua News Agency January 27, 2007)
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