Annual investment return of China's social security fund reaches 7 pct

China's social security fund recorded an annual average investment return rate of 7.36 percent, according to a report released by the National Council for Social Security Fund on Saturday.

The national social security fund is the national strategic reserve fund for social security in China, used to supplement and reallocate social security expenditures such as pension insurance during periods of increased elderly population.

According to the report, by the end of 2023, the total assets of the national social security fund was 3014.56 billion yuan (about 426.62 billion U.S. dollars), with investment income of 25.01 billion yuan (about 3.54 billion U.S. dollars) and an investment return rate of 0.96 percent.

Since its establishment, the fund has achieved an average annual investment return rate of 7.36 percent, with a total investment income of 1,682.58 billion yuan (about 238.12 billion U.S. dollars).

In terms of investment methods and scope, the social security fund adopts a combination of direct investment and entrusted investment for its investment operations, according to the report.

Approved domestic investment categories include bank deposits, bonds, trust loans, asset securitization products, stocks, securities investment funds, equities, and equity investment funds.

Approved overseas investment categories include bank deposits, bank notes, large negotiable certificates of deposit and other currency market products, bonds, stocks, and securities investment funds, said the report.

In 2023, due to various domestic and international factors, the capital market experienced increased volatility, said the report.

The National Council for Social Security Fund increased positions in the domestic stock market as the valuation advantages became more prominent, laying the foundation for achieving better returns in the medium to long term, said the report, adding that it also played a constructive role in stabilizing confidence and expectations in the capital market.

Meanwhile, the council has been monitoring the changing landscape, optimizing its overall asset allocation, and increasing investments in fixed-income assets to spread risks.

In 2023, the fund recorded favorable investment returns, showing the effectiveness of its diversified asset allocation strategy, said the report.

Annual investment return of China's social security fund reaches 7 pct

South Korean President Lee Jae Myung said on Wednesday that Seoul firmly adheres to the one-China principle, in comments made ahead of his upcoming state visit to China.

The remarks were made in an interview with China Media Group (CMG). The visit is scheduled for Jan 4–7.

"The consensus reached between governments of the Republic of Korea and China when diplomatic relations were established continues to be the fundamental principle governing our relations, and its effectiveness remains steadfast. I want to clearly state that the ROK has always adhered to the one-China principle. Maintaining peace and stability in regional matters, including in Northeast Asia and concerning the Taiwan issue, holds significant importance to us," said Lee.

"The foundational relationship between the ROK and China was established on a very principled and fundamental basis from the beginning. It is clear that the ROK government has always adhered to this position and has never wavered from it. I believe that the sound development of ROK-China relations depends on both sides fully respecting each other's core interests and being mutually tolerant of each other's positions. In this context, we will, as always, uphold the one-China principle as the Taiwan issue is China's most fundamental concern," he said.

ROK president reiterates firm adherence to one-China principle