Hong Kong will become the first choice for overseas investment of the Chinese mainland's national social security fund.

Director of National Council for Social Security Fund Xiang Huaicheng made the comment at a Thursday conference in Beijing.

He said the reason to choose Hong Kong is its status as the most open financial center in the world and the capital management center of the Asia-Pacific region.

The fund investment will benefit from its mature market, healthy legal system, abundant professionals and close relations with the Chinese mainland.

Earlier in March, the State Council gave the green light for the overseas investment of social security funds which are supported by the state budget.

At present, about 500 million to 1 billion US dollars of social security funds can be invested overseas by the means of discretionary investment.

But Xiang said the exact amount will be confirmed after assessment of asset allocation and investment risks.

(Xinhua News Agency November 26, 2004)