golden eggs.docVIP

golden eggs 　　“Is my nest egg safe？” 　　This is one of the main questions keeping Chinese people awake at night. For most of them， their nest eggs are represented by a national basic pension fund designed to secure the well-being of current and future retirees. According to China’s Ministry of Human Resources and Social Security （MOHRSS）， there was an approximate US$547 billion surplus in the national pension fund by the end of 2014， held mainly by banks in the form of demand deposits， the safest option when compared with any other alternative. 　　However， this national safe deposit box is perhaps not as secure as one would imagine. If the actual value of the fund keeps shrinking， noted Chen Liang， director of the MOHRSS social security insurance supervision department， a cash deposit that today could pay for a bag of flour to feed a family for a few days may in the future only be enough to buy a single steamed bun. In an online video interview with webportal on September 2， 2015， Chen explained that since China’s current pension system was established in the late 1990s， the rising prices of everyday goods and services have outpaced interest rates on pension de- posits， thus devaluing them. It is estimated that more than US$90 billion of the fund has evaporated due to inflation， jeopardizing the retirement security of the world’s largest aging population. 　　On August 17， 2015， the State Council， China’s cabinet， finally decided to turn this fund into a money-making “golden egg” by diversifying investments. Aside from depository products and treasury bonds， investment opportunities with higher returns （and thus higher risks） will now be exploited. MOHRSS deputy minister You Jun， speaking at a press conference on August 28， commented that about US$313 billion of the existing surplus could be used for investment. 　　Before these golden eggs can be retrieved from bank vaults and placed into other “baskets，” however， pension funds in the hands of some 2，000 munici