China’s national social security fund will be given more freedom to invest with local private equity funds, the Wall Street Journal reported, citing sources familiar with the situation. That freedom will allow the US$75 billion National Council for Social Security Fund (NSSF) to choose investments without seeking approval from higher authorities, up to an as-yet undetermined allocation level. According to sources, the NSSF has chosen two yuan-denominated funds run by private equity firms CDH Investments and Hony Capital for its first investments. Each firm is expecting to raise up to US$720 million from domestic limited partners. Last week, the NSSF announced it was seeking fund management companies to help it invest in global equity markets.
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