China’s National Social Security Fund looking To Invest In U.S. And European Markets

According to a report by the Financial Times, the head of China’s National Social Security Fund said on Monday that the fund was looking to invest in U.S. and European markets.

Speaking to reporters in Beijing, Dai Xianglong, Chairman of the National Social Security Fund, said, “There is a lot of room for us to expand our investments abroad and we do intend to do that.” Xianglong added that apart from the U.S. and European markets, the fund was also looking at India and other fast-growing economies. He added that the fund is specifically looking at direct investments and private equity funds.

At the end of 2009, NSSF had invested 6.7% of its capital outside of China; however it is allowed to invest up to 20% of its capital abroad. The fund is also looking to expand its size and is expected to reach Rmb 2,000 billion in the next five years.

According to Xianglong, the U.S. economy will continue to recover from the crisis and might reach its target of doubling exports in the next five years. He also believes that the debt problems in Europe will not deteriorate further; however, he views social welfare system as a burden on many European countries. Commenting on the U.S. dollar, he said that he expects it to remain a global reserve currency. On the Chinese currency, which has been in debate and a reason for tensions between U.S. and China, he said that he expects it to appreciate in the long-term; however, it should remain stable in the short-term.