National Social Security Fund
|China||US$ 160.6 Billion|
Transparency Rating: 5
Firm Investment Style: Mixed
Entity Structure: Fund
Established in August 2000, the Central Committee of the Chinese Communist Party and State Council decided to create the National Social Security Fund (NSSF) which is to be administered by the National Council for Social Security Fund (SSF).
This reserve fund is mainly funded by capital and equity assets derived from reduction of state-owned shares, fiscal allocation of the central government, and other investment proceeds. The SSF which manages the fund is a government agency on the ministerial level directly under the State Council of the People’s Republic of China
Strategy & Objectives:
The NSSF invests domestically however, they are beginning to invest in emerging market economies and Europe. They also plan to allocate up to 20% of the fund into foreign investments usually through external money managers rather than taking direct stakes. In addition, the fund is now allowing investments into private equity, similar to that of the China Investment Corporation.
Fund domestic investment include: bank deposits, bonds, investment trusts, asset-backed securities, stocks, securities investment funds, equity investment and equity investment funds.
Fund overseas investment include: bank deposits, bank bills, negotiable certificates of deposit and other money market products, bonds, stocks, securities investment funds, and swaps for risk management, forward and other derivative financial instruments.
The board of directors governs the fund. The Chairman and Vice Chairmen are nominated by the State Council. The rest of the directors are appointed by the State Council.