Home / News Type Content Tools: Save | Print | E-mail | Most Read | Comment
Social Security Cash Eyes Hong Kong Market
Adjust font size:  ZoomIn ZoomOut

China is putting the finishing touches on a plan to invest part of its social security fund in overseas capital markets and will start to choose new fund managers this year.

"We have not yet finished the legal and institutional preparations," Xiang Huaicheng, chairman of the National Council for the Social Security Fund, told a news conference in Beijing on Friday.

The State Council (China's cabinet) approved the fund's overseas investment proposal on February 9.

The council, the first domestic institution approved to invest in overseas capital markets, has yet to conduct further market analysis, choose fund managers and custodians and get its precise investment plans approved before starting to trade in overseas bonds and equities.

Xiang cautioned that all of this will take time, adding that no timetable was currently available.

Xiang, former minister of finance, did not reveal how much money the council would be investing overseas, but assured that the process will take place in a well-prepared and gradual fashion.

The international economic climate and the council's own capabilities will also determine how fast the fund will enter overseas markets, he said.

Market sources have estimated that only around 4-5 billion yuan (US$483-603.8 million) would be allowed to be invested in the Hong Kong financial market at the initial stage.

"Hong Kong is certainly a preferred market for our overseas investment, but it will not be the only one," the fund chairman said.

Council Vice-Chairman Gao Xiqing said it will pick the best fund managers when it enters a given overseas market.

Overseas companies are the preferred choice, since domestic companies may not have sufficient overseas expertise.

"We are waiting for the State Council to issue new detailed guidance on our overseas investment before we make the next move," he said. "We will also come up with parallel regulations."

China's National Social Security Fund, which totaled 132.5 billion yuan (US$16 billion) at the end of 2003, is a strategic reserve fund controlled by the central government to support future social security demands as the nation's population gets older, while the welfare funds overseen by the Ministry of Labour and Social Security are mainly used to cover current social security expenditure.

The council, which was established in 2000, had formally authorized six domestic fund management companies to help it conduct securities investment on the mainland last year.

The fund realized a return ratio of 3.56 per cent last year, compared to 2.59 per cent in 2002.

As much as 24 per cent of the returns were generated by stock investment, said Xiang.

He said the council would choose more new fund managers this year, as a higher proportion of funds would flow into stocks.

Some fund managers have already expressed an interest in taking part in the bidding, including joint ventures such as ABN AMRO Xiangcai Fund Management Co.

The securities sector has a generally optimistic outlook regarding the mainland's stock market performance this year, based on the good economic prospects and improving corporate results, according to industry experts.

Xiang said the council would raise the upper limit of the ratio of funds used for equity investment to 15 per cent this year, from the previous ceiling of only 5 per cent.

But it will be prudent in investment and pay close attention to risk control.

"We will not take high risks for high returns," Xiang said, adding: "We will not put all our eggs into one basket."

(China Daily April 10, 2004)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Social Security Fund Flowing Gradually into Capital Market
- China to Enhance Management of Social Security Fund
- Welfare Funds Can Be Invested in Stocks
- Ministry Misbehaviour Rekindles Worries about Social Security Cash
- Tumbling Stocks Hurt Profits of Social Security Fund
- Proposed Policy Moves Excite Investors
Most Viewed >>
- World's longest sea-spanning bridge to open
- Yao out for season with stress fracture in left foot
- 141 seriously polluting products blacklisted
- China starts excavation for world's first 3G nuclear plant
- Irresponsible remarks on Hu Jia case opposed 
- 'The China Riddle'
- China, US agree to step up constructive,cooperative relations
- FIT World Congress: translators on track
- Christianity popular in Tang Dynasty
- Factory fire kills 15, injures 3 in Shenzhen

Product Directory
China Search
Country Search
Hot Buys
主站蜘蛛池模板: 久久亚洲精品无码AV红樱桃| 国产精品久久久久久久| 亚洲精品亚洲人成人网| 精字窝全球最大华人| 国产在线无码精品无码| aaa一级最新毛片| 日本精品视频在线观看| 亚洲精品在线不卡| 这里只有精品网| 国内精品免费麻豆网站91麻豆| 一本到在线观看视频| 校花哭着扒开屁股浣肠漫画| 午夜精品不卡电影在线观看| 被公侵犯肉体中文字幕| 国产韩国精品一区二区三区| 中文字幕欧美日韩| 日韩不卡在线视频| 亚洲AV无码成人网站在线观看| 福利视频导航网| 国产在线一区二区| 天天综合色天天桴色| 天堂mv在线免费看| а√最新版在线天堂| 性一交一乱一视频免费看| 中文字幕在线观看亚洲视频| 日本人六九视频jⅰzzz| 亚洲国产欧美精品| 精品国产丝袜自在线拍国| 国产一区二区三区不卡在线观看| 1313苦瓜网在线播| 小仙女app2021版最新| 中国男同videos| 日韩精品一卡2卡3卡4卡三卡| 亚洲一级毛片免费观看| 欧美巨鞭大战丰满少妇| 亚洲日本乱码一区二区在线二产线| 欧美金发大战黑人wideo| 动漫人物差差差免费动漫在线观看| 美女扒开腿让男人桶免费看 | 国产麻豆91在线| 一级做a爰片久久毛片图片|