China social security fund reports investment yields

BEIJING -- China's social security fund gained 68.6 billion yuan ($11.2 billion) from investment in 2013, with a 6.2-percent return on investment, according to statistics from the fund manager.

The rate of return on investment was higher than the 2.6-percent inflation rate during the period, the National Council for Social Security Fund (NCSSF) said.

Founded in 2000, the fund is designed to serve as a solution for the country's aging problem as well as a strategic reserve to support future social security expenditures.

By the end of last year, the fund's managed assets totalled 1.24 trillion yuan, and its investment yields amounted to 418.7 billion yuan, which put the average annual investment return rate at 8.13 percent, outperforming the nominal inflation level.

Despite the overall success in investment, the fund was found to have incurred unnecessary losses due to mismanagements.

The National Audit Office announced earlier this week that losses incurred by irregular management and unwise decisions at the fund totalled 17.5 billion yuan during the 2010-2013 period.