China's National Council for the Social Security Fund (NCSSF) is
expected to pick its first batch of fund managers to look after its
overseas investments in the second half of this year.
A total of US$500-800 million from the fund will be invested in
overseas stock markets within the year, sources said.
Around 80 overseas fund management companies, investment banks
and securities firms have applied to the council to become overseas
investment managers, the Hong Kong Economic Times quoted NCSSF
Chairman Xiang Huaicheng as saying on Monday.
Xiang also said the council would start stock investment in Hong
Kong in the fourth quarter through authorized investment
managers.
An official with the council told China Daily yesterday
it would stop receiving applications from overseas fund managers by
Friday and start reviewing the material.
It should come up with a decision in the third or fourth quarter
after interviews, and negotiations over management fees and other
contract details.
Companies that fail to win contracts this time could try again
next year as the council could select more fund managers in the
future, the official said.
In a work conference in March, the NCSSF mapped out its
investment plan for 2006. It said US$500-800 million would be used
for overseas stock investments and US$100-300 million would be
invested in overseas products with fixed yields.
(China Daily June 28, 2006)