China's social insurance fund hits 4-year high return

China’s social insurance fund achieved an investment return rate of 8.1 percent last year, marking a four-year high, partly thanks to the rebounded stock market.

It reported an investment income of 218.42 billion yuan (HK$238.52 billion) for last year, according to the National Council for Social Security Fund.
Since its establishment, the fund has maintained an average annual investment return of 7.39 percent, with cumulative investment returns reaching 1.9 trillion yuan.

By the end of last year, the total assets of the social security fund exceeded 3.32 trillion yuan. Domestic investment assets accounted for 86.8 percent of the total, amounting to over 2.88 trillion yuan, while overseas investment assets stood at over 437.8 billion yuan, representing approximately 13.2 percent.

The council stated that despite facing increased external pressures and severe volatility in the capital markets last year, the SSF maintained a generally stable equity risk exposure, allowing it to capitalize on the rebound in the A-share market. 

By employing a front-loaded and increased allocation to fixed-income assets, the fund effectively seized investment opportunities presented by the ongoing decline in interest rates. 

Furthermore, the SSF actively intensified its equity investment efforts and optimized its overseas investment portfolio. These measures helped diversify investment risks through asset allocation and played a role in steadily enhancing the fund's overall returns.

The social security fund serves as a national strategic reserve fund designed to supplement social security expenditures, such as pensions, during the peak period of population aging.