The head of China’s national pension fund, the National Council for Social Security Fund, said the organization is facing "serious challenges" achieving an operating profit this year due to a slumping stock market, the Wall Street Journal reported. Dai Xianglong said this year’s decline in the value of the fund’s stock assets outpaced its realized income. The fund’s operating-income ratio, which measures investment returns, stood at 43.2% at the end of last year due to gains in local equities. Dai said the pension fund will increase investments in fixed-income products and keep a "stable proportion" in stock investments. The fund will also seek to make more direct equity investments in companies and is considering setting up new equity-investment funds. Dai made the comments in an interview published Monday in the state-run People’s Daily.