NCSSF does the business for Guangdong provincial pension
03 June 2013
By Hui Ching-hoo
The 100 billion RMB (US$15.8 billion) Guangdong provincial pension fund, which is overseen by China’s National Council for Social Security Fund (NCSSF), delivered a return of 3.4% in the second half of 2012, beating the rate of inflation into the bargain, according to a report from China Business News on May 30.
The NCSSF was charged with undertaking investments for the provincial pension fund by the Guangdong provincial government; it subsequently embarked on funnelling part of the fund into the local equity market in March of 2012. The fund accounts for approximately 27% of the province’s total pension assets.
Currently, provincial pension funds in China can only invest in low-risk asset classes such as sovereign bonds and bank deposits. The Guangdong provincial pension fund got round this due to the fact that the scheme is managed by the NCSSF.
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