China’s $74 billion national pension fund said it has received approval to invest up to 10 percent of its assets in private equity funds.
The National Council for Social Security Fund, or NSSF, may invest in private equity and industry investment funds, the pension fund said in a statement posted on its Web site. The investments must be cleared with China’s National Development and Reform Commission, according to the release.
NSSF Chairman Dai Xianglong oversaw the creation of China’s first private equity fund, the Bohai Industrial Investment Fund Management Co., in 2006, when he was serving as mayor of the northern Chinese city of Tianjin where the fund is based. China Investment Corp., which manages the nation’s $200 billion sovereign wealth fund, bought a $3 billion stake in Blackstone Group LP, manager of the world’s largest buyout fund, last year.
Read also China pension fund allowed to invest in private equity funds by Xinhua.