I. Responsibilities

In August 2000, the Central Committee of the Communist Party of China and the State Council of the People’s Republic of China decided to establish the National Social Security Fund (NSSF) and the National Council for Social Security Fund (NCSSF). The main responsibilities of the NCSSF are:

To manage and operate the assets of the NSSF;      

To hold and manage equity assets transferred from Central State-owned Enterprises under entrustment of the State Council;

To manage part of the surplus of the Basic Old-age Insurance Fund entrusted by local provinces in accordance with relevant regulations of the State Council.

The NCSSF invests and operates the assets directly or through mandates to professional institutions in line with the investment scope and proportion limits approved by the State Council, fulfilling its principal responsibility of ensuring the safety, capital preservation and appreciation of the funds.

II. Organization Structure

According to the Articles of the NCSSF, the Board is the highest governing body of the NCSSF and consists of the Chairman, Vice Chairmen and Board members. It is mainly responsible for examining and approving major principles and significant issues concerning the funds’ investment and operation, the annual asset allocation plan, etc.. The Chairman and Vice Chairmen/Chairwoman are appointed by the State Council, and the Board members are approved by the State Council. The current Secretary of the Leading CPC Members Group of the NCSSF is Mr. DING Xuedong, the Chairman is Mr. LIU Wei and Vice Chairmen/Chairwoman are Mr. WANG Wenling, Mr. WU Jianli and Ms. JIN Luo. The Board members are Mr. HUA Jianmin, Mr. XIANG Huaicheng, Mr. DAI Xianglong, Mr. XIE Xuren, Mr. LOU Jiwei, Mr. TANG Chengpei, Ms. ZOU Jiayi, Mr. YOU Jun, Mr. WEI Dichun, Mr. LU Yan, Mr. ZHANG Guangjun, Mr. QIN Rupei, Mr. WANG Yihong, Mr. LI Keping, Mr. WANG Jianxi, and Mr. HE Ping.

The NCSSF currently has 14 departments, i.e., the General Office, Asset Allocation & Research Department, Finance & Accounting Department, Equity Investment Department, Fixed-income Investment Department, Global Investment Department, Equity Management Department (also Industrial Investment Department), Legal & Compliance Department, Risk Management Department, Pension Management Department, Information Technology Department, Human Resources Department, Transferred State-owned Equity Management Department (Preparatory) and Administrative Service Center. Besides, there are 4 non-permanent committees, i.e., the Investment Committee, the Risk Management Committee, the Internal Control Committee and the Expert Appraisal Committee.

III. Assets under Management

As of December 31, 2021, the NCSSF’s total net assets under management were RMB 5962.49 billion. Of the total net assets, NSSF’s net assets were RMB 2598.08 billion; the net assets of the central fiscal subsidy for fully funded enterprise employees’ individual basic old-age insurance accounts were RMB 102.42 billion; the net assets of the transferred state-owned equity for pooling social security funds were RMB 1801.51 billion; and the net assets of the entrusted Basic Old-age Insurance Fund were RMB 1460.47 billion.

In accordance with policies and regulations, the operation modes and accounting methods of the above-mentioned four parts of assets are as follows:

Social security funds (including the NSSF and the individual account fund) are operated in a unified way and following investment policies and accounting methods of the NSSF;

The transferred state-owned capital is held and accounted for independently in accordance with the Implementation Plan of Pooling Social Security Funds by Transferring Part of the State-owned Capital;

The basic old-age insurance fund is managed and accounted for independently on the basis of the Measures on the Investment Management of the Basic Old-age Insurance Fund.

IV. Investment Philosophy and Method

The NCSSF pursues an investment philosophy of “Value Investment, Long-term Investment and Responsible Investment”, and adopts an investment method with the combination of direct investment and mandated investment. Direct investment is carried out by the NCSSF itself and mainly covers bank deposits, trust loans, equity investment, equity investment funds, transferred state-owned shares and index stock investment, etc.. Mandated investment is carried out by investment managers and mainly covers domestic and overseas stocks, bonds, securities investment funds, and overseas financial derivatives such as swaps and forwards for the purpose of risk management. The assets of the mandated investment are under the custody of the custodians selected by the NCSSF.