hkskyline
January 15th, 2005, 09:13 PM
Visit builds hopes for flow of China pension-fund cash
Enoch Yiu
15 January 2005
South China Morning Post
A visit by the top official of China's National Social Security Fund next week has sparked hopes that the multi-billion-yuan fund will invest in Hong Kong soon.
Securities and Futures Commission chairman Andrew Sheng yesterday said he had invited Xiang Huaicheng, president of the National Social Security Fund Council, for a routine visit, but gave no further details.
The brokerage community is speculating that Mr Xiang could announce the fund's intention to invest in Hong Kong.
However, Mr Sheng said he "could not confirm if Mr Xiang will announce any good news during his visit next week".
The central government last year approved in principle for the fund to invest overseas.
Mr Xiang said in November that about 5 per cent of the fund's assets of 149.2 billion yuan would be invested in overseas markets, including Hong Kong.
Secretary for Financial Services and the Treasury Frederick Ma Si-hang said Hong Kong would be a good investment market for the National Social Security Fund.
"Mr Xiang wanted the fund to invest overseas at the end of last year, but administrative work has delayed the plan," Mr Ma said.
"There is no clear new timetable yet and I do not know if he will announce some good news next week.
"However, Mr Xiang has said Hong Kong would be the first choice of overseas market for the fund to invest."
Sally Wong, executive director of the Hong Kong Investment Funds Association, said geographical diversification would be crucial to help the fund achieve better risk-adjusted returns.
"In the process of overseas investment by the National Social Security Fund, Hong Kong would be well-placed to contribute as it houses almost all international fund companies," she said.
Enoch Yiu
15 January 2005
South China Morning Post
A visit by the top official of China's National Social Security Fund next week has sparked hopes that the multi-billion-yuan fund will invest in Hong Kong soon.
Securities and Futures Commission chairman Andrew Sheng yesterday said he had invited Xiang Huaicheng, president of the National Social Security Fund Council, for a routine visit, but gave no further details.
The brokerage community is speculating that Mr Xiang could announce the fund's intention to invest in Hong Kong.
However, Mr Sheng said he "could not confirm if Mr Xiang will announce any good news during his visit next week".
The central government last year approved in principle for the fund to invest overseas.
Mr Xiang said in November that about 5 per cent of the fund's assets of 149.2 billion yuan would be invested in overseas markets, including Hong Kong.
Secretary for Financial Services and the Treasury Frederick Ma Si-hang said Hong Kong would be a good investment market for the National Social Security Fund.
"Mr Xiang wanted the fund to invest overseas at the end of last year, but administrative work has delayed the plan," Mr Ma said.
"There is no clear new timetable yet and I do not know if he will announce some good news next week.
"However, Mr Xiang has said Hong Kong would be the first choice of overseas market for the fund to invest."
Sally Wong, executive director of the Hong Kong Investment Funds Association, said geographical diversification would be crucial to help the fund achieve better risk-adjusted returns.
"In the process of overseas investment by the National Social Security Fund, Hong Kong would be well-placed to contribute as it houses almost all international fund companies," she said.