China's pension fund soared fivefold in 2007 on stock market plays

The operating income of China’s national pension fund grew more than fivefold last year to US$16.45 billion amid strong gains in local stocks, according to its annual report posted by state media on Monday, the Wall Street Journal reported. The National Council for Social Security Fund did not provide a breakdown of its domestic and overseas stock investments, but it appeared to be lured by the high returns offered by domestic stock markets during most of last year. Its income from stock market investments jumped to US$612 million from US$160 million the previous year. The fund also said that by the end of 2007, its bond holdings had more than tripled from a year earlier as stock-market volatility increased.