The attitude of US public retirement funds to Chinese assets is dividing, reflecting the rise in investment risks and the intensification of political disputes in the world's top two economies.
The Wall Street Journal reports that the managers of the retirement fund plan are different.The California Teachers 'Retirement Fund began to fix the first batch of stock investment managers focusing on China at the end of August, while the Texas Teachers' Retirement Fund will minimize the fund's Chinese stock allocation.The Florida Public Department Fund stopped the new Chinese investment strategy earlier this year because the regulatory authorities of the Chinese regulatory department had previously rectified the education and technology industries.
The retirement fund management agency is worried about not only China's political factors.The report quoted a person familiar with the matter and said that in 2019 and 2020, a large retirement fund in the Midwest of the United States held opposition to several investment involving the debt of Chinese private sector.For new restrictions, they may have to sell the Chinese assets invested at a loss.
Fund managers and retirement fund executives said that this differentiation has a long history.The main reasons include the continuous intensification of political disputes between the United States and China, the IPO of Ant Group suddenly stopped two years ago, and the ban on the profit -seeking institution last year.Fund manager said that the possibility of inflation rate rising in 2022, the possibility of military conflict in the Taiwan Strait, and the Chinese company's stock markets' plunge in the stock markets around the world after strengthening power control in China, which has exacerbated these concerns.
The Treasury Secretary of North Carolina said: "When you see the retracement of this type that has occurred in China, everyone will definitely worry." Weir is responsible for supervising the state's $ 110 billion in the state's $ 110 billion in US $ 110 billionRetirement fund.Last Wednesday (October 26), the market value of China's stock held by the fund was 1.27 billion US dollars, below $ 1.51 billion in September 30.
The size of the retirement fund of American teachers, firefighters, and other public officials is about $ 5 trillion. In the past 20 years, more and more local officials and local officials who manage these retirement funds have shifted to the Chinese market and seek to make up for make up for make upDifferential funds.The large -scale state -level public retirement funds invested billions of dollars in private equity, venture capital and real estate in China.Among the international or emerging market stock investment portfolios held by a series of states and urban retirement funds across the United States, Chinese stocks occupy an increasingly larger share.
According to data from the Retirement Research Center of Boston College, the average of about 7%of the public retirement funds is allocated at emerging market stocks, which is higher than 3%in 2001. Its data involves those disclosure of specific positioning levels.fund.Retirement fund management agencies usually try to run or win the international index; China accounts for 10%or more in the international index.They often buy stocks of all countries covered by the relevant benchmark index, and do not want to run the benchmark index because they missed the major rise in a certain country.
