Social security fund assures HK markets

The director-general of investment of China's Social Security Fund assured a visiting Hong Kong delegation of brokers and fund managers on Thursday that the fund's expanding investment in the market this year would not create volatility in the H-share market. Li Keping said the social security fund was a long-term investor and would therefore "not actively buy and sell Hong Kong stocks in the short term". The fund, which was established in 2000 to support the mainland's pension system, plans to double its domestic stock investments and begin buying overseas securities and fixed-income products from this month. As its main income source, the fund receives about 3% of the entire issued capital from all H-share launches of state-run companies. The fund's assets amounted to US$26.3 billion at the end of last year, up 23.9% from 2004.