At present, the pension fund managed by the investment committee is about $600 billion, with 5.5 million participants, and is one of the largest pension plans in the United States. At a time when China and the United States are in a trade dispute, the decision to increase investment in the Chinese market has aroused strong opposition from members of Congress.
Earlier, U.S. Senator Rubio proposed to Congress a bipartisan proposal to restrict pension funds for U.S. employees from investing in shares of Chinese enterprises.
In response to members questions, the investment committee said it had taken a decision on the advice of a consulting firm. The consultancys assessment shows that increasing investment in Chinas stock market is in the best interests of pension fund participants because emerging market stocks have outperformed developed market stocks in recent years, investing in emerging market stocks in line with other major public and private pension schemes.
Perspective on foreign capitals pension position
In fact, before MSCI and other indexes incorporated a shares into the index system, there were many foreign pension funds (because the foreign pension system is different from domestic pension funds, pension funds and other similar funds are collectively referred to as pension funds) that directly invested in the a share market through QFII.
As of the end of the third quarter, securities times u00b7 databao combed the latest shareholder details of a shares and found that at present, the foreign pension with a large proportion of holding position in a shares include the first national pension trust company, the second national pension of Sweden, Quebec savings investment group and Canada annuity plan investment committee, which hold two, four, eight and three companies shares respectively, which are pension Fund is a relatively influential investment management institution with large management scale in Australia, Sweden and Canada.
The shares held by Canada Annuity Plan Investment Committee include Midea Group, Hans laser and CNPC capital, with a total market value of more than 6.7 billion yuan. The fund began to buy Midea Group in the second quarter of last year. As of the end of the third quarter of this year, the group held 120 million shares of Midea, with a total position of more than 6 billion yuan. According to the statistics of data treasure, Midea Group has increased by 58% since this year.
The second national pension fund of Sweden holds shares of dongfangguoxin, Huace film and television, qimingxingchen and Feike electric. The fund first bought a shares at the end of 2015. In the third quarter of this year, it significantly increased its position and held a shares with a market value of more than 600 million yuan.
In the third quarter of 2017, the state first pension trust company bought Huace film and television for the first time, and then bought CAMCE international, BaoTi, Jerry, zhongchu and Taihai nuclear power.
Quebec savings and investment group has a total position of nearly 1.4 billion yuan, which was bought for the first time in the fourth quarter of 2015. At present, the shares held by Quebec savings and investment group include Sanhuan group, China gold, Lepu medical, guoci materials, shunluo electronics, Hanlan environment, zhongchu shares and Zhongmu shares.
The attraction of A-share to foreign capital is growing
In recent years, A-share has been incorporated into the index system by several well-known index companies in the world, and global capital is increasingly interested in A-share. More and more foreign institutions are optimistic about investment opportunities in China.
For example, BlackRock, the largest US listed investment management group, said recently that Chinas investment opportunities are too big to be ignored. The latest position report of Jinqiao water, the worlds largest hedge fund, also showed that in the third quarter, the fund continued to increase its holdings of two new Chinese ETFs in the second quarter.
According to Societe Generale Securities, overseas experience shows that the improvement of institutionalization is a major feature of market maturity, and the role of long-term fund represented by pension cannot be ignored.
From the perspective of foreign capitals access to A-share market, it can be divided into three stages: the first is QFIIs opening of foreign investment in A-share market for the first time; the second is the interconnection mechanism of Shanghai Hong Kong stock connect and Shenzhen Hong Kong stock connect; and the third is to gradually open the authority of general foreign investors to invest in A-share market. With the development of investment channels, the channels for foreign investors to buy a shares are gradually diversified, and the attraction of a shares to foreign investors is growing.