Mainland's social security fund expects to buy Taiwanese securities
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The Chinese mainland's social security fund expects to invest in the Taiwanese securities market and establish fund management firms with local financial groups, the fund's chief Dai Xianglong said in Taipei Thursday.
"Once Taiwan authorities give us the nod, we will implement the plan. We have prepared well for doing business with Taiwanese financial firms," said Dai, chairman of the National Council for Social Security Fund (SSF), at a finance seminar in Taipei.
Several Taiwanese financial firms have contacted the SSF about cooperation opportunities, he added.
The SSF National Council manages a 700 billion yuan (102.94 billion U.S. dollars) fund and the total under management is estimated to reach 2 trillion yuan in 2015.
Twenty percent of the fund can be invested outside the mainland.
By the end of last year, the SSF had invested 50 billion yuan outside the mainland, 7 percent of its funds, Dai said.
The SSF plans to increase its investment in securities and bonds outside the mainland, including in Taiwan, he said.
The SSF hopes to establish fund management firms with Taiwanese financial firms as they are experienced in venture capital, he said. "We can jointly invest in Taiwan enterprises, including those doing business on the mainland."
The SSF also plans to expand its investment to private equity, he said.
"We had been cautious about investing outside the mainland. Until last year, the SSF only invested in securities and bonds. But this year, the SSF will begin to invest in private equity and private equity funds. If the Taiwan authorities allow it, we will invest in this business as well," he said.
Social security funds from both sides of the Strait can regularly exchange know-how and participate in joint-investment opportunities, he added.
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