Social Security Report

China Expands Social Security Fund Investments to Local Government Debt

New measures are meant to diversify risk while increasing returns

China’s State Council, or cabinet, announced measures on Wednesday to boost returns at the nation’s social-security fund, expanding its investment scope to include local-government bonds and other financial instruments. The new rules allow the fund to invest up to 20% of its portfolio in local-government debt and corporate bonds, according to a statement on the main government website. Previously, the fund was allowed to invest up to 10% of its portfolio in corporate debt. The measures will enable the fund to “appropriately expand the scope of investments, diversify risk and make a stable increase in its investment returns,” according to the statement. Read More…

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