China's social security fund would invest up to US$1 billion primarily in Hong Kong markets, State media reported, citing Xiang Huaicheng, Chairman of the National Council For Social Security Fund.

The Shanghai-based International Finance News quoted Xiang as saying that the social security fund is expected to have US$500 million to US$1 billion worth of foreign exchange on hand by the end of the year and that will decide the size of its overseas investment.

The news was carried in all major financial newspapers.

“I hope we can start investment before the end of the year,” Xiang said at an insurance seminar held in Beijing,

The central government allowed the social security fund to invest outside the mainland in February but detailed regulations governing such investment are still under review.

Xiang said that Hong Kong market will be the primary venue for social security fund investment but other overseas markets were not ruled out.

He said the social security fund investment would be managed by professionals.

(Shenzhen Daily November 29, 2004)