Compiled by Caijng staff

(Caijing.com.cn) China's national pension fund posted a 2008 net loss of 39.4 billion yuan due to the collapse of the domestic stock market, its first annual loss since it was established in late 2000.

That compares to a profit of 135.5 billion yuan in 2007, the National Council for Social Security Fund said in its audited annual report published in the official China Securities Journal on May 6.

The fund booked a fair value loss of 62.7 billion yuan on its securities trading positions in 2008, after China stocks lost two-thirds of their value. That's against a fair value gain of 22.6 billion yuan in 2007.

It held stocks with a market value of about 90 billion yuan at the end of 2008, according to a statement posted earlier on the fund's website.

Total assets stood at 562.4 billion yuan, down from 569.2 billion yuan at the end of 2007.

The fund, headed by former central bank governor Dai Xianglong, added that its accumulated investment income since its establishment totaled 159.8 billion yuan, representing annual returns of 9 percent.

In 2008, its investment return was minus 6.79 percent, from 38.93 percent in 2007.

The stock market losses have led the pension fund to focus on other investments this year, such as unlisted state-owned companies and major infrastructure projects to support the government's 4 trillion yuan economic stimulus plan.

The fund has received approval from the State Council to buy strategic stakes in China Development Bank Corp. and Agricultural Bank of China Ltd. to support the two state banks'restructuring, Dow Jones has reported.

(1 yuan = 14 U.S. cents)