Despite a downturn in the stock market, the National Social Security Trust Fund is making inroads into A Shares by opening 24 accounts.
According to the updated statistics issued by China Securities Depository and Clearing Corporation Ltd, the 24 accounts were opened last July to tap A Shares traded in Shanghai and Shenzhen.
It is the first time that the Social Security Trust Fund has invested in A shares since last October, bringing the total number of accounts up to 116.
Market analysts believe that the 24 accounts will come from 12 social securities investment portfolios, but the size and type are not known yet.
A source revealed that China Southern Fund Management Co, Ltd. recently built a 500 million yuan investment portfolio along with the Social Security Trust Fund. The news was echoed by another fund management company that now oversees a new portfolio for the Social Security Trust Fund.
At an estimate of 500 million yuan for each portfolio, these 12 social securities investment portfolios could amount to 6 billion yuan.
Investors previously hoped that the Social Security Trust Fund could intervene in the market to stabilize falling stocks. In response to changing market forces, investors are most interested in questions about the size, timing and role of the investment.
According to available information, the Social Security Trust Fund has played an active role in new stock offerings recently. In July it purchased shares in eight new public offerings, and in ten new public offerings in June, 27 social security investment portfolios weighed in.
(China.org.cn by He Shan, August 14, 2008)
