China's pension fund seeks bigger returns as ageing population triggers fear of shortfall
But national scheme will not lower the bar for investments or increase its quota for publicly listed shares, deputy finance minister says
The national pension fund was expected to boost returns after expanding its investment scope to include local government debt and other products, deputy finance minister Wang Baoan said on Friday, as he joined independent researchers to warn about a possible shortfall in payments as the population ages.
Wang also expressed concern about the high risks involved in investing in the stock market, saying there was no plan to increase the share of the 1.53 trillion yuan (HK$1.9 trillion) in funds used to buy publicly listed stocks.
The leadership has realised the urgent need to expand the pension fund to cope with challenges brought on by an ageing population. Some researchers estimate the shortfall in the pension fund may reach close to 40 per cent of gross domestic product by 2033.
With an expanded investment scope, the fund's "general return will improve under normal circumstances, on the premise of stable economic growth and financial market performance", Wang said.
Last year, the social security fund returned 11.43 per cent.
"We aim to achieve high operating efficiency and high returns for the fund," he said.
"However, it is not our only goal."