Pension fund to increase investment in private equity

The national pension fund is preparing to boost private equity investments as the fund is expected to grow to 1 trillion yuan ($146.5 billion) in a year, up from $80 billion at the end of last year, Chairman Dai Xianglong said on Wednesday.

Dai, head of China's National Social Security Fund (NSSF), also said that the global currency system dominated by the dollar would gradually shift to one comprising of the dollar, euro and Asian currencies in the aftermath of the global financial crisis.

"Big changes are taking place, but they don't happen overnight," Dai said.

Reforming the international financial system is necessary, but it's a long-term process, he added.

China and some other developing countries are seeking more say in the global financial system as the world economy reels from fallout linked to the US mortgage lending crisis.

Dai said that China, Russia, India and other export-reliant economies hoped to see a stable dollar, but expressed concern over the currency's fate.

"The problem is not whether the US government is willing or not to keep the dollar stable, but whether it has the ability to do so," Dai said.

"We should shift our focus to the domestic market, and support economic and financial restructuring," he said.

Reuters