Stock investments contribute half of China's Social Security Fund profits
(Xinhua)
Updated: 2006-10-19 20:25
China's Social Security Fund racked up investment income of 12.14 billion
yuan (1.52 billion U.S. dollars) in the first nine months of the year, at a
yield of 6.01 percent.
Thanks to the bullish market for the first half of the year, stock
investments contributed 50 percent of the figure, said Xiang Huaicheng, chairman
of the National Social Security Fund Council, on Thursday.
The total assets of the Fund reached 255.4 billion yuan at the end of
September, compared with 211.78 billion yuan at the end of 2005. Stock
investments currently account for 23.46 percent of the total.
Xiang stressed the need for a cautious investment policy, saying the council
will improve its investment returns while giving top priority to risk control.
He called for a long-term view of the fund which seeks stable, long-term
returns.
The council is eyeing overseas markets in order to broaden investment
channels, said Xiang.
The fund lost 919 million yuan on the stock market in 2004 when the council
decided to expand stock investment but failed to foresee the bearish movement of
the market that lasted over a year.
The fund was established in 2000 as part of China's effort to build up a
national social security network to cope with the growing needs of its aging
population.
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