China’s SOEs asked to transfer capital gains to NSSF
China's state-owned enterprises (SOEs) should transfer their capital gains and ownership shares to the National Social Security Fund (NSSF), according to the fund's Communist Party representative.
Dai Xianglong, NSSF party secretary, has proposed that the central goverment transfer 30% of the capital gains generated by SOEs in order to boost the fund's asset base as China's population ages, the official Xinhua News Agency reported. In cases where the government owns more than 51% of SOEs, equity holdings shouldd also be handed to the NSSF.
Speaking at the Boao forum early this month, Dai said that the NSSF's assets will increase to up to RMB5 trillion ($806 billion) by 2020, driven by SOE contributions.
Government subsidies and remittances from SOEs are the major contributors to the fund, which saw its assets top RMB1 trillion fro the first time last year. The NSSF reported that investment income amounted to RMB64.5 billion in 2012, with a net return of 7%, its best performance in three years.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.