US$400bil pension fund warns about debt risks

The National Council for Social Security Fund has advised asset managers that handle its money to sell some bonds including those from riskier local government financing vehicles and private developers after a review, said sources. — Bloomberg

BEIJING: One of China’s biggest state-run investors is adding to the chorus of warnings over debt risks at the nation’s cash-strapped developers and local government financing vehicles.

The National Council for Social Security Fund, which oversees about US$417bil (RM1.9 trillion) according to the latest available figures, has advised asset managers that handle its money to sell some bonds including those from riskier local government financing vehicles (LGFVs) and private developers after a review, said sources.