(Yicai Global) April 25 -- Investment of basic endowment insurance funds is progressing well, China's Ministry of Human Resources and Social Security said, adding that it will improve guidance for local authorities and is looking to sign more investment deals.
By the end of March, seven provincial-level governments (Beijing, Shanghai, Henan, Hubei, Guangxi, Yunnan and Shaanxi) had signed entrusted investment contracts with the National Council for Social Security Fund. The value of the agreements totaled CNY360 billion (USD52 billion), of which CNY137 billion was available and has been invested. The remainder will be used in batches over the coming years as agreed in the contracts.
Some other provinces are also actively preparing for the investment, and report overall progress has been smooth so far.
The ministry's next move is to guide provinces with larger endowment insurance funds and stronger supporting capacity to start investing immediately, while encouraging other provinces to get involved. It will also continue to improve investment regulation to prevent risk and increase returns.