Chinese social security fund looks to expand investment horizons
The Chinese Government is considering the feasibility of investing the assets of the $375 billion Social Security Fund outside its current mandate of treasury bonds and bank deposits.
The Chinese Government is considering the feasibility of investing the assets of the $375 billion Social Security Fund outside its current mandate of treasury bonds and bank deposits.
China experts are predicting the country’s growth will slow in the medium- to long-term as the government undertakes the difficult task of rebalancing the economy away from its dependence on investment and exports.
China is the largest investment destination for Temasek Holdings, with Bank of China and China Construction Bank two of its most significant holdings. Finding investment opportunities in Asia is also the key focus for the Singaporean investment company.
Renowned American economist and writer Burton Malkiel has dismissed fears that the Chinese economy may falter and says he expects China to continue to grow strongly for at least a decade.
While the China-growth story was not new, an expert in investing in the region said investors should consider if their current exposure to the economic giant took advantage of where future growth was predicted to occur.
In a sign that ESG issues are becoming a greater concern in China, the country’s first ESG index will launch this Friday as a joint venture between the main Shanghai exchange and an Italian research company.
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