China’s state council has approved a plan to allow China’s National Social Security Fund to manage and invest pension funds worth a total of RMB2 trillion (US$322.1 billion) on behalf of local authorities, Reuters reported, citing two unnamed industry sources. The fund has been managing pension funds worth roughly RMB100 billion for Guangdong since 2012, with a cumulative investment return of about RMB17.3 billion, according to its annual report. Its total assets amounted to about RMB1.5 trillion at the end of last year, when it posted a return of 11.43%, up from 6.2% in 2013. For more on China’s pension scheme, see CER’s in-depth report.
China Economic Review