China fund rules out big overseas investment
The top official at China's National Social Security Fund (NSSF) has ruled out investing in overseas stocks this year, dashing hopes in Hong Kong for a multibillion-dollar influx from across the border.
Xiang Huaicheng, president of the National Social Security Fund Council, also said that overseas investments might be as small as US$500 million to US$1 billion, or about 5 per cent of the fund's assets of 149.2 billion yuan as at the end of last month.
Mr Xiang declined to offer a new target date for overseas investment, saying that although the central government had approved it in principle, the implementing regulations had not yet been issued.
'It is close to the end of the year and there are still a lot of unresolved issues that need to be addressed by various government bodies, including the China Securities Regulatory Commission and China Banking Regulatory Commission,' he said.
Mr Xiang denied that any deadlines had been missed. 'It was only my personal wish for the plan to go ahead by the end of the year, not an official target,' he said.
'The National Social Security Fund is for retirement protection of the nation's elderly. When investing in overseas, we need guaranteed returns and no chance of loss.'
Mr Xiang was speaking to reporters yesterday before giving a speech to more than 120 fund managers and insurance company executives who had joined a delegation led by Hong Kong's Secretary for Financial Services and the Treasury Frederick Ma Si-hang.
Rumours had been circulating in Hong Kong that the NSSF might plough up to US$5 billion into overseas stock markets. Mr Xiang yesterday made clear that nothing of the sort was imminent.
'We do not have that much money to invest into overseas markets,' he said.
'At present, the maximum available for overseas investment is closer to US$500 million or US$1 billion.'
At the end of last month, the NSSF had assets of 149.2 billion yuan, including 13.6 billion yuan in stocks, 114.5 billion yuan in bonds and 21.1 billion yuan in other assets.
Mr Xiang said the NSSF projected its assets at 160 billion yuan by the end of next month.
