China’s pension investment is becoming more sophisticated, say analysts, as managers pivot to long-term investments such as biotech and new energy.
The $287 billion state pension reportedly plans to invest in both state- and privately-backed infrastructure projects, as it boosts its alternatives exposure.
Proposed new rules for China’s state pension fund point to more flexibility over what it can invest in when it comes to foreign and private equity assets.
The Chinese pension fund's use of external managers and its foreign exposure are tipped to rise due to mandates from provincial governments. But it has been criticised for its approach to index investing.
In a bid to boost returns, China's national pensions body is ramping up domestic PE investment, with nearly $5 billion to be allocated this year.