The value of China's social security fund had reached 400
billion yuan (US$53.3 billion) by the end of June this year, said
Wang Zhongmin, deputy director of China's National Council for
Social Security Fund (NSSF).
The security fund reported a profit rate of 15.2 percent in the
first half of 2007, making an operating profit totaling 147.9
billion yuan (US$19.7 billion), Wang told a social security
forum.
The NSSF has kept to the principle of safety-oriented investment
and long-term investment, which guaranteed a stable return and an
increasing profit rate for the fund, said Wang.
"The fund is still insufficient to the country's huge population
of 1.3 billion," said Wang, saying the ideal amount of social
security fund should be two trillion yuan (US$266 billion).
In case of an annual profit rate of no less than 5 percent, a
two-trillion-yuan fund could generate 100 billion yuan (US$13.3
billion) in profit each year, said Wang, adding that will allow the
fund to satisfy the needs of social security while keeping its
principal intact.
China's social security fund was established in August 2000 to
prepare for the country's coming peak of aging population.
(Xinhua News Agency September 23, 2007)