(Yicai Global) Jan. 4 -- Four Chinese regions plan to entrust the National Council for Social Security Fund to handle their investments and pension funds, worth a total CNY150 billion (USD23 billion), according to a social security official.
Gansu, Zhejiang, Jiangsu provinces and Tibet Autonomous Region are considering joining the scheme, Tang Xiaoli, deputy director of the Social Insurance Fund Supervision Bureau under the Ministry of Human Resources and Social Security said at a forum yesterday, during the release of China Pension Actuarial Report 2018 - 2022.
Nine Chinese provinces have already agreed to invest CNY430 billion (USD66 billion) with the fund, which expects yields of more than 5 percent in its first year.
China should leverage administrative measures and urge provinces to invest and operate pension insurance funds and use actuarial methods to better explain the purpose of these investments, Tang said.
There should be a balance between fund security and high returns, she added. The council can't ensure high-return, low-risk investments, she said, but hopes actuaries can calculate returns that ensure financial balance for the basic pension insurance system.