[May 24, 2012] New investment portfolios of China's social security fund to focus on blue chip Tweet BEIJING, May 24, 2012 (Xinhua via COMTEX) -- China's National Council of Social Security Fund (SSF) has set up new portfolios for pension fund investment and the fresh capital is expected to invest mainly in blue chip stocks, China Securities Journal reported on Friday. The SSF has already put in some 10 billion in the new portfolios to buy stocks and another batch of investment with a similar value is expected to be brought in later, the daily quoted sources from several investment institutions as saying. Analysts estimate the asset being allocated in the new portfolio is the pension fund of Guangdong Province for which the SSF was authorized to make investment. China's State Council, the cabinet, approved the SSF to take charge of the operation of 100 billion yuan worth of pension fund of Guangdong Province in March, marking the first step in the country's efforts to preserve and increase the value of the fund which is suffering from value depreciation on domestic inflation pressure. According to the agreement signed between Guangdong Province and SSF, the latter promised that the investment gains should not be lower than the time deposit interests in the corresponding period of time. Dai Xianglong, chairman of the SSF, said earlier at 2012 Boao Forum for Asia that the pension fund would be mainly invested in fixed-yield products while a maximum stake of 40 percent of the fund may be invested in stocks. It indicates that no more than 40 billion yuan worth of the pension fund may enter the A-share market soon. Although it is not too much, it is expected to take demonstrative effect to attract more long-term capital into the market. Analysts deem that it is good timing for the pension fund to enter the A-share market as market's PE ratio has dipped to ten-year low with limited room for further decline. (Edited by Li Xueqing, [email protected]) [ Back To TMCnet.com's Homepage ]