China’s national pension reserve more than doubled its offshore investments over the past three years to a record 580 billion yuan (US$86 billion), as the state fund increasingly sought higher returns by diversifying its portfolio beyond domestic assets.Offshore investment assets held by the National Social Security Fund (NSSF) reached 580.02 billion yuan at the end of 2025, accounting for a record 15.23 per cent of its total assets, according to an annual report released by the National Council for Social Security Fund on Tuesday.Offshore assets accounted for 9.8 per cent of the fund’s assets in 2022 at 282 billion yuan, rising to 346 billion yuan in 2023 and 438 billion yuan in 2024.The growth in offshore allocations comes as Beijing seeks to broaden investment channels for mainland institutional capital, with Hong Kong emerging as one potential beneficiary.Pan Gongsheng, governor of the People’s Bank of China, said in July that China would continue to increase the share of foreign-exchange reserves allocated to assets in Hong Kong. Financial regulators have also taken steps recently to facilitate investments by mainland insurers in Hong Kong-listed exchange-traded funds.Lower interest rates on the mainland meant the fund had to seek higher yields elsewhere while ensuring geographical and asset-class diversification, which aligned directly with national policy, according to Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators.