Chilean private pension funds assets were $78 billion at the end of May, up 11.3% on last year. Of the total, $24.8 billion, just under a third, were invested overseas. Another $22.8 billion are invested in local markets, and $11.6 billion in the state, mostly in the central bank. Investments in Chile’s corporate sector account for 23.8% of pension fund assets, at $18.5 billion. Power, natural resources and service sector firms are the biggest recipients.
Poland’s finance ministry sold all one-year treasury bills, worth 1 billion zloty (PLN), at yesterday’s auction by the National Bank of Poland. Investor demand was PLN 1.12 billion. Average yield was 4.204% and the minimum price was PLN 9589.01. At the last auction of 52-week bills, on June 5, the ministry sold the entire offer of PLN 1 billion. Demand for the bills was PLN 1.71 billion, average yield was 4.083%, and the minimum price was PLN 9,602.41. The finance ministry will offer PLN 2 billion 5-year bonds on Wednesday.
The Industrial and Commercial Bank of China announced that it has sold a stake worth 18.03 billion yuan to the nation's social security fund. The investment agreement was signed with the National Social Security Fund in Beijing yesterday. The agreement will be finalized after it receives regulatory approval. Details of the size of the stake were not disclosed.
Fitch Ratings has affirmed South Korea's sovereign rating at A+ with a stable outlook. Fitch's rating report said that South Korea's strong credit fundamentals and a manageable security threat from North Korea, warranted the current rating. The country's fiscal conservatism, high level of foreign exchange reserves, liquidity ratio and net external creditor position also justified the current rating. Fitch expressed concerns over increasing oil prices, the strength of the South Korean Won, and a gradual slowdown of demand from South Korea's major trading partners, as concerns. Fitch upgraded Korea about eight months ago.