NSSF predicts 5% annual return for 2012

China's National Social Security Fund (NSSF) is predicted to have an investment return of about 5 percent for this year, subdued mainly by the sluggish stock market, NSSF chairman Dai Xianglong was quoted by Hong Kong-based ET Net News Agency as saying Monday.

Dai said that the stock market is bottoming out and he expects stock market performance to improve next year.

Equity investment returns of the NSSF fell sharply in 2011 to 0.84 percent from 4.23 percent in 2010, also due to the gloomy stock market.

Between its establishment in 2000 and the end of 2011, the NSSF accumulated assets of 868.8 billion yuan ($139 billion), with cumulative returns of 284.6 billion yuan and a lifetime investment return of 8.4 percent, 6 percentage points higher than the inflation rate, according to the NSSF's annual report for 2011.

Dai said that the NSSF will have a 300 billion yuan total quota for equity investment by 2015, 20 percent of which can be invested in equities of companies not yet listed, and another 10 percent in private equity firms.

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