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China pension fund to invest in overseas FOF

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2010-09-15 13:37

China's national pension fund will invest in overseas funds of funds (FOF) by the end of the year, said Dai Xianglong, chairman of the National Council for Social Security Fund, the Shanghai Securities News reported Wednesday.

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According to regulations, 20 percent of the pension fund, or $120 billion, could be invested in overseas stocks or bonds, Dai said Tuesday. The pension fund has used only 7 percent of the available amount, he added.

After investing in FOF, the pension fund will gradually be used for direct equity investments, Dai said, according to the newspaper.