China’s National Council for Social Security Fund (SSF) has taken a 10% stake in China Cosco Shipping as part of Beijing’s pension reform amid an ageing population.
According to a regulatory filing from Cosco Shipping Energy Transportation, one of Cosco Shipping’s main subsidiaries, the State-owned Assets Supervision and Administration Commission of China’s State Council, has transferred the stake to the SSF for free.
The commission previously owned 100% of Cosco Shipping, China’s largest shipping conglomerate.
“With the continued economic development and ageing population, China has faced increasing pressure in paying out from the basic national pension fund,” according to the State Council.
“In order or pursue fairness and share the achievements of state-owned enterprises with Chinese citizens, we have decided to transfer state capital into the SSF.”
The SSF’s main responsibility is to replenish China’s national pension reserves whenever necessary. According to government estimates, the proportion of Chinese population aged 60 or above will grown rapidly in the 2020s.
The Chinese central government has targeted to transfer a significant portion of its stakes in state-owned enterprises to the SSF by the end of 2020.
In September, the Ministry of finance transferred shares worth CNY 150bn ($21bn) it had held in Agricultural Bank of China (ABC), Industrial and Commercial Bank of China, Bank of Communications and the People's Insurance Company of China to the SSF, according to China Daily.
As of the end of 2018, the SSF held assets with a total value of CNY 2.24trn.
