China is stepping up reform of private pension market
Themed Opportunities and Challenges of Pension Management: Reform and Globalisation, the event brought together a roster of market practitioners to gather their views on developments in the global pension industry and investment trends.
The first keynote address at the event was delivered by Wang Zhongmin, vice chairman of the National Council for Social Security Fund (NSSF).
Mr. Wang said the pension assets overseen by the NSSF are made up of two components – the fundamental pension fund and the supplementary Social Security Fund (SSF).
The performance of the SSF and the fundamental pension fund used to be very different. However, according to Mr. Wang, the latter’s investment style has become more in line with the SSF’s in recent years since the NSSF took over some of the investments of the fundamental pension fund in 2012.
Mr. Wang said the SSF has managed to deliver stable, long-term returns since its inception in 2000 because its investment approach closely follows market trends.
“In this context, the SSF was able to take advantage of Mainland stock market bullish runs over the past decade to gain considerable profits through its flexible asset allocation,” he added.
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