DEFINITION of 'National Social Security Fund (China)'

National Social Security Fund (China) is a government-controlled investment fund established primarily to provide a reserve of funds for China's social security system. The fund is managed by the National Council for Social Security Fund. According to the fund's annual report, the National Social Security Fund had approximately $319 billion in assets at the end of 2016.

BREAKING DOWN 'National Social Security Fund (China)'

Although the National Social Security Fund is an independent entity distinct from the Chinese government, the National Council for Social Security Fund that manages it is a ministerial-level government institution. These funds are set aside to support social security payments through periods when population trends draw the fund down by a greater amount than the contributions it receives. The average age in China is 37, compared with 38 in the U.S., according to CIA World Factbook.

Inside the Fund

According to an English translation from the government's website, "The National Social Security Fund was established in August 2000. It is a national social security reserve fund composed of funds raised by the central government budget, state-owned capital transfer, fund investment income, and other forms of approval approved by the State Council. It is earmarked for the peak of population aging. supplementary social security pension spending and other times, transfers, by the National Council for Social Security Fund (SSF for short) is responsible for managing operations. National social security funds and basic government pensions, basic medical insurance, and other social insurance funds are different funds, and their sources of funds and operations are different. There are also differences in their uses. Social insurance funds include basic pension insurance funds, basic medical insurance funds, work injury insurance funds, unemployment insurance funds and maternity insurance funds."

In terms of investments, the fund, in its 2016 annual report, stated that "Social Security Fund adopts a combination of direct investment and commissioned investment to carry out investment operations. Direct investment is directly managed and operated by the Social Security Fund, which mainly includes bank deposits, trust loans, equity investments, equity investment funds, transfers of state-owned shares and indexed stock investments. The entrusted investment is entrusted by the social security fund to the investment manager for management and operation, which mainly includes domestic and foreign stocks, bonds, securities investment funds, as well as foreign exchange and other derivative financial instruments used for risk management abroad. The entrusted investment assets are funded by the Social Security Fund."

The average annual investment return rate of the social security fund since its establishment was 8.37%, through the end of 2016, the government stated.

  1. Actuarial Balance

    Actuarial balance is the difference between future Social Security ...
  2. Social Security Tax

    The tax levied on both employers and employees to fund the Social ...
  3. Social Security Act

    The Social Security Act is a law enacted in 1935 to create a ...
  4. Social Responsibility

    Social responsibility is the idea that a company should not just ...
  5. Social Networking

    Social networking is the use of internet-based social media programs ...
  6. Social Identity

    A company's image as derived from its relationships. An organization's ...
Related Articles
  1. Retirement

    Will the Social Security Cap Increase Help It Last Longer?

    The Social Security cap increase will be 7% in 2017, but even that may not be enough to keep Social Security from running out of funds.
  2. Retirement

    Who Pays Your Social Security Benefits?

    The short answer is, current earners. Taxes on current wages pay the Social Security benefits of retirees, the disabled, children and other beneficiaries.
  3. Investing

    Socially Responsible Mutual Funds

    It is possible to avoid unethical investments and still profit from mutual funds. Find out how!
  4. Retirement

    An Analysis Of Social Security Benefits And Their Future

    Social Security is a significant driver of the US economy--as good a reason as any to make sure you understand it!
  5. Retirement

    Introduction to Social Security

    You've probably contributed to this fund, but will you reap the benefits? Find out here.
  6. Retirement

    How to Fix an Error on Your Social Security Check

    For many seniors, social security benefits checks are their income stream which means the benefit has to be correct. If you spot an error, you can fix it.
  7. Investing

    When Socially Responsible Investing Hurts

    Socially responsible investing can make you feel good but it may not boost your returns.
  8. Retirement

    4 Things That Are Reducing Your Social Security

    Worried about Social Security dwindling? We discuss four ways it’s already happening.
  9. Retirement

    Don't Worry Too Much About Social Security

    Is the fear that Social Security won’t be around when the younger generations retire valid?
  10. Retirement

    Will Baby Boomers Bankrupt Social Security?

    Will the massive Baby Boomer generation, now retiring in droves, bankrupt the Social Security System?
Hot Definitions
  1. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  2. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  3. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  4. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  5. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  6. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
Trading Center