Security fund earns 60B yuan from bank investments
(Xinhua)
Updated: 2006-11-06 16:12
China's Social Security fund has earned 60 billion yuan (US$7.5 billion) from
its investments in the Bank of Communication, the Bank of China and the
Industrial and Commercial Bank of China.
"The Social Security Fund is
one of the most important institutional investors in the Chinese capital market
and has a number of advantages over ordinary institutional investors", said
Xiang Huaicheng, chairman of the National Social Security Fund Council on
Monday,
Xiang said that, as a pension fund, the Social Security Fund
must secure itself against losses and avoid risky high-return investments.
The fund earned 12.14 billion yuan (US$1.52 billion) from its
investments in the first nine months of the year, at a yield of 6.01 percent,
said Xiang.
The fund's total assets reached 255.4 billion yuan at the
end of September.
Statistics show that the fund achieved an aggregated
yield of 11.82 percent from 2000 to 2004, outperforming the inflation rate for
the same period but still short of the 13.66-percent interest rate of five-year
treasury bonds.
The Social Security 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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