China’s summer market meltdown has claimed another victim — Japanese pensioners.
Japan’s government pension fund — the world’s largest — lost $64 billion in the three months to September 30, and much of that was due to crashing share prices in China.
Global stocks tumbled in August and September, driven by the crash in Chinese markets. Volatility remained as concerns grew over a wider economic slowdown.
The Japanese fund’s value fell 5.6% to 135 trillion yen ($1.1 trillion), according to a report released Monday. The fund’s holdings of Japanese stocks lost nearly 8%, while its international stock holdings tumbled 11%.
Japan has the oldest population in the world — more than a quarter of people are over 65, and nearly 30,000 turned 100 last year. Saving in the government pension fund is mandatory for all Japanese, and investment managers face growing pressure to generate higher returns for the rapidly aging population.