China's Pension Fund Won't Comment on Sale Report

China's government pension fund declined to comment on a newspaper report that it's been instructed to reduce equity holdings within a month.

The National Council for Social Security Fund must cut the stocks in its investment portfolio by at least 30 percent and up to 50 percent, according to a report in yesterday's Securities Times, a state-run newspaper, which didn't cite a source.

The stock sale is valued at between 40 billion yuan ($5.4 billion) and 60 billion yuan, the newspaper said, citing its own calculation. This is the first time the pension fund has reduced its holdings amid China's stock market rally, the newspaper said without elaborating.

Jin Yingzi, the pension's deputy director-general, declined to comment today when reached by phone in Beijing. Li Keping, director general of the pension's investment department, couldn't be reached to comment.

Gao Xiqing, vice chairman of the pension fund, said during an April 27 investment forum in Beijing that China's stock prices are ``defying gravity.'' China's key stock index has soared by another 60 percent since Gao's remarks. Gao couldn't be reached today to comment.

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