CHINA’S increasingly large pension funds, corporate annuities, and other forms of social insurance funds need securities companies’ one-to-one special services in securities research and investment management to preserve and increase the value of their assets, said Guo Shuqing, chairman of the China Securities Regulatory Commission.

Guo said this is a great potential opportunity for Chinese investment banks, including investment banking joint ventures.

He said that the National Council for Social Security Fund has enjoyed an over 9 percent average annual return on investment over the past decade. The combined amount of local social security funds in China is expected to reach around 2 trillion yuan by the end of the year.

These funds are scattered across the nation, and lack a unified management system. An investment institution like the National Council for Social Security Fund should be set up or commissioned to better manage these funds.