NSSF primed to make foreign PE investments

NSSF is considering setting up an office in Hong Kong and is now choosing managers to help it make private equity investments in foreign unlisted companies, mainly small- and medium-sized ones, the news service reported, citing Shanghai Securities News.

The pension fund’s exposure outside of China across all asset classes currently stands at seven per cent of total assets, versus a cap of 20 per cent.

Of its 700bn yuan under management, 25 per cent is in unlisted equity in domestic companies.

In May 2009, it was reported that NSSF was seeking cabinet approval to invest in foreign private equity funds, as it was not at the time permitted to do so.

The pension fund was then working on a formal proposal with China’s finance ministry and ministry of human resources and social security, which both oversee the NSSF.

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