China Welfare Fund To Increase Overseas Private Equity Investments

 (Reuters) – China’s 700 billion yuan ($103 billion) National Social Security Fund (NSSF) will start making private equity investments overseas, the official Shanghai Securities News reported on Thursday, citing Chairman Dai Xianglong.

NSSF is considering setting up an office in Hong Kong and is now selecting managers to help it make private equity investments in foreign unlisted companies, mainly small- and medium-sized ones, the paper said.

The insurance fund’s overseas portfolio, including stock and bonds, currently accounts for less than 7 percent of total assets, compared with a ceiling of 20 percent.

Out of NSSF’s nearly 700 billion yuan in assets, 45 percent is in fixed-income products, 30 percent in stocks while 25 percent is in unlisted equity in domestic companies. ($1=6.77 Yuan) (Reporting by Samuel Shen and Farah Master; Editing by Ken Wills)