China's social security fund loses 919 million yuan in stock market last year

Last year China's social security fund lost a total of 919 million yuan (about 111.12 million US dollars) in stock market investments, the Shanghai-based Dongfang Daily quoted the National Council for Social Security Fund as saying Wednesday.

At the beginning of 2004, China's bearish stock markets in Shanghai and Shenzhen suddenly surged after the government announced its decision to further develop the country's capital market.

Believing the stock market was meeting its turning point, the National Council for Social Security Fund decided to increase the proportion of the social security fund invested in the stock market last year. The stock market index, however, continued to drop throughout the year.

Despite losses in stock market, the national social security fund still fulfilled a net increase of 33.5 billion yuan (4.05 billion US dollars) in 2004, according to the annual report from the National Council for Social Security Fund.

The general asset of the national social security fund, which was established in 2000, reached 171.14 billion yuan (20.7 billion US dollars) at the end of 2004.

Source: Xinhua