Chinese National Council for Social Security Fund

Submitted by IFS on Sat, 04/01/2006 - 22:32
in

IFS recently completed an evaluation of the legal framework and governance of the investment program of the Chinese National Council for Social Security Fund, in Beijing-- work financed by the Asian Development Bank. Established to help close the gap between promised pension benefits and assets available to pay them, the Fund--now valued at approximately $25 billion (U.S.)-- is financed both by legislative appropriations and by proceeds from initial public offerings of formerly state-owned enterprises. IFS compared numerous aspects of the Fund's current operations to global "best practices" regarding, e.g., fiduciary standards, investment criteria, internal governance, ethics provisions, brokerage procedures and autonomy over procurement, budget and personnel.