China's state-owned firms should transfer ownership shares to pension fund

SHANGHAI, April 16 Mon Apr 15, 2013 10:28pm EDT

SHANGHAI, April 16 (Reuters) - Chinese state-owned enterprises should transfer 30 percent of their capital gains and ownership shares exceeding 51 percent to China's National Social Security Fund (NSSF), local media reported quoting the fund council's party secretary.

Dai Xianglong, NSSF's party secretary, told the official Xinhua News Agency that in order for the fund to be better resourced, more assets should be poured into the NSSF including from the state-owned enterprise sector.

Dai proposes that listed state-owned enterprises should turn over 30 percent of the capital income to the NSSF and transfer ownership shares exceeding 51 percent to the social insurance fund. Dai said he hopes to expand the fund's asset base to 3 trillion yuan ($485 billion) by 2020.

Last April, Dai said the NSSF would support the development of companies controlled by the central government by investing in them directly and indirectly. The NSSF managed assets worth 869 billion yuan in 2011. ($1 = 6.1871 Chinese yuan) (Reporting by Melanie Lee; Editing by Shri Navaratnam)