NCSSF increases appetite for industrials
16 May 2012
News, Asia, China
By Hui Ching-hoo
China’s National Council for Social Security Fund (NCSSF) is looking to increase its allocation to industrials. It plans to invest 250 billion yuan (US$39.6 billion) in state-owned enterprises (SOEs) and National Development and Reform Commission (NDRC) approved private equities between 2012 and 2015.
The NCSSF had total assets under management (AUM) of 868.8 billion yuan as at the end of 2011. Of this, 16% (137.5 billion yuan) was allocated to industrials. The pension fund plans to step up its investment in the sector in order to sustain the country’s economic growth, the NCSSF revealed in a statement.
Currently, the NCSSF is allowed to invest 20% of its AUM in direct industrial investments and 10% in private equity funds. The pension fund had holdings in various SOEs such as Bank of China, China Communications Bank, and the People’s Insurance Group with total investment of 87 billion yuan at the end of 2011. It had also committed 19.6 billion yuan to private equity investments.
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