China's Social Security Fund racked up investment income of 12.14 billion yuan (1.52 billion U.S. dollars) in the first nine months of the year, at a yield of 6.01 percent.

Thanks to the bullish market for the first half of the year, stock investments contributed 50 percent of the figure, said Xiang Huaicheng, chairman of the National Social Security Fund Council, on Thursday.

The total assets of the Fund reached 255.4 billion yuan at the end of September, compared with 211.78 billion yuan at the end of 2005. Stock investments currently account for 23.46 percent of the total.

Xiang stressed the need for a cautious investment policy, saying the council will improve its investment returns while giving top priority to risk control. He called for a long-term view of the fund which seeks stable, long-term returns.

The council is eyeing overseas markets in order to broaden investment channels, said Xiang.

The fund lost 919 million yuan on the stock market in 2004 when the council decided to expand stock investment but failed to foresee the bearish movement of the market that lasted over a year.

The fund was established in 2000 as part of China's effort to build up a national social security network to cope with the growing needs of its aging population.