BIZCHINA / Center
Social security fund warned of risks in investment
(Xinhua)
Updated: 2006-11-17 11:11
China's labor minister on Thursday warned administrators of social
security funds not to take risky investments that might jeopardize the
safety of the funds.
"For the management of social security funds, safety always comes before
increasing the value," said Tian Chengping, Minister of Labor and Social
Security, when addressing graduate students from the Chinese Academy of
Sciences in Beijing.
By the end of 2005, China's social security funds totaled 1.84 trillion
yuan (233.35 billion US dollars), according to official statistics.
"Strict rules should be set for the management of these funds and any
investment should be carried out with extreme caution," Tian said.
China's current social security framework includes five main insurance
programs: pension, unemployment, medical treatment, injury at work, and
pre-and postal-natal care for female employees.
The misuse of social security funds has been highlighted this year. In
September, the Shanghai scandal, involving misconduct over
3.2-billion-yuan loan of city funds in Shanghai, brought down Chen
Liangyu, Party Secretary of Shanghai and member of the Political Bureau
of the Chinese Communist Party Central Committee.
Chen is China's highest ranking official to be sacked in a corruption
scandal in the last decade.
(For more biz stories, please visit Industry Updates)
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