The Study Of S Ocial Insurance Fund Investment Operation Mechanism Of Chinese

Along with the social progress and the improvement of people’s living standards, our social security system is facing the continuous reform. The social security system, as an important component of the social security fund has become one of the important issues of the world. Social security fund play a very important role in the construction of social security system and even the whole economic development. After years of reform and development, social insurance system in China has been basically formed, the raising way of Social insurance had been transformed From pay-as-you-go to Partly accumulation, expands the fund scale and provides strong support for economic and society development. However, along with the coverage of the social insurance continues to expand, the operation pressure is also growing, put forward a great challenge to the social insurance fund investment. In the case of aging population and Embezzlement appear frequently, the core issue of social insurance fund investment management is the fund gap and increase the value of the funds.The management of social security fund investment is an important means of make sure value of the funds. Because of changes in interest rates, financial crisis and the impact of inflation, the social security fund is faced with the decline in the purchasing power and the social security fund assets risk of devaluation. Due to the limitation of various laws and the instability of the capital market, the effect of social insurance fund investment is not ideal, and the low level of return on investment affect the life of residents and the stability of the whole society seriously. Many scholars study the problems of the social insurance fund investment, especially for investment into the capital market. In their opinion, the social insurance fund can achieve the original goal through scientific, effective and reasonable investment method. On the contrary, if the social insurance fund in the capital market is lack of scientific and effective management, money will be irreparable loss, interests of the insured are damaged and social unrest would be happen. Therefore, examines the conditions and the system characteristic of our country, draw lessons from the international experience of mature to explore our social security fund investment management both have great theoretic and realistic significance. This paper is mainly based on the increase value of social insurance fund, to explore the overall running of our country social insurance fund investment from the angle of system. Analysis the investment operation current situation, development, investment supporting conditions, mode choice and risk control and supervision and so on, and provide practical suggestions and countermeasures for the social insurance fund investment and operation.This paper studies the mechanism theory of social insurance fund investment operation. On content of the mechanism are explained as based on social insurance funds and form an organic connection including the fund operation actuality, supporting condition, mode, mode and supervision. Each internal part of the mechanism is mutually independent but closely related as an organic unity. Mechanism parts need to perform at the same time coordination can achieve social insurance fund investment operation best. The relate theory involves the principal-agent theory and the theory of portfolio CAPM model. The social security fund management and investment management is often separated, separation of ownership and management lead to benefits target abhorrent, that a trustee has occurred between the principal-agent problem. The key is to avoid adverse selection and moral hazard problems and how to correctly choose the fund manager and the custodian. Portfolio CAPM model theory is to explain the diversified investment to diversify risk.Secondly, this thesis studies the situation and the supporting conditions of our country social insurance fund investment and operation. At present, Our social insurance fund investment and operation exists a series of problems, such as the individual account operation empty, the fund exists serious gap; lack of health system environment; investment channels and tools too conservative; fund investment income is low; the management is softening, lack of effective supervision; risk management level is low, poor risk management etc. At the same time, the social insurance fund investment operation mechanism implementation also rely on certain matching conditions, such as perfect legal environment, high-quality professionals, financial product innovation. Therefore, we need according to the current situation, improve the relevant supporting measures to make sure our country social insurance fund investment operation smoothly.Third, this paper studies the mode choice of our social insurance fund operation mechanism. Social insurance fund can select many ways to invest, but any invest exist risk. The best way to avoid the risk is to choose more investment tool, to invest money in different risks and benefits. Therefore, a plurality of investment is inevitable. On the whole, our country social insurance fund investment should continue to "quantitative restrictions" as the core as the basic investment requirement, take a fixed proportion of investment strategy as well as the rate of change of investment strategy. In the mode of choice, our country take of a moderately centralized management model on the whole, adopt different management patterns owning to the different role and nature of social pooling account and individual account. Social pooling account using pay-as-you-go raising, fund transfers in whole society, the pressure of preserve and increase value is small, high liquidity, so take government centralized management pattern of social security; and as individual accounts, it uses exactly the accumulation fund raise, long time accumulation, the appreciation pressure is large, so in the basis of individual accounts, commissioned by the operation and management mode.Fourth, this paper studies fund risk control and regulation mechanism. Any investment involves risk. Social insurance fund investment operations are facing the systemic risks, including inflation risk, market risk, exchange rate risk, interest rate risk, legal risk, political risk, and the unsystematic risk including principal-agent risk, liquidity risk, credit risk and operational risk, etc. Because of our country social insurance fund is still in its infancy, and the development of capital market in China is not mature and perfect, the risk management of social insurance fund investment is particularly important, influent the stable of social insurance fund and the achievement of entire social security goals directly, relevant with everyone’s interest and the social stability. It should be focus on principal-agent and new methods or experiences to control the risk of social insurance fund investment operation, and establish and perfect the effective incentive constraint rules based on the reality of our country, in order to effectively use principal-agent model to help realize the ideal goal of fund investment operation. The management strategy of fund investment can be found respectively from the principal and the agent. Social insurance fund clients take positive and effective measures to improve the principal-agent relationship by establish laws and regulations on the management of social insurance funds or raising social insurance funds in the form of tax; while the agent of social insurance fund can organize and improve from the investment mechanism, internal control, risk control, the hosting institution compensation and so on. In addition, strengthen the investment and operation of social insurance fund supervision is the key to keep our social insurance fund investment operation mechanism operation smoothly. According to the current status of our social insurance funds operation and the development of capital market, the supervision mode of social insurance funds investment operation can be from the supervision model of quantitative restrictions transition to the prudential supervision mode gradually. The public social insurance fund belongs to the first pillar of social insurance fund must carry on the strict limit mode to ensure the current social insurance funds can paid timely and fully; The fund belongs to the second pillar and the third pillar of the social insurance fund can slowly loosen restrictions to guarantee the added value of fund. At the same time, the supervision of social insurance fund should be establish a complete set of rules of the social insurance fund regulation, and based on the reality of our country and long-term, learn the experience of western developed countries for reference, perfect and innovation the social insurance fund investment operation regulation, to find out the system of supervision system suitable to China’s actual demand.Finally, the article put forward the countermeasure to perfect our country social insurance fund investment operation mechanism. Optimize the legal environment for social insurance fund investment operation, constantly adjust and refine, speed up the construction of the external environment, improve the level of its legislation, to ensure the social insurance fund investment operations in accordance with the application in each link. Innovation in the way of fund investment, except of a certain proportion of bank deposits and bonds investment to ensure the safety of funds, the special Treasury bonds, infrastructure investment, overseas market and green investment should be attention and in-depth mining. Rationalize the social insurance fund investment management system, management society to plan as a whole account and individual account respectively, the country as a whole fund shall be subject to the centralized management mode and individual account fund under private competitive management mode; establish a high-quality team of professionals and independent vertical supervision system to guarantee the realization of the social insurance fund investment operation smoothly. Improve the supervision system of social insurance fund operation, strengthen the supervision of fund investment institutions, establish effective incentive constraint mechanism, exercise social supervision, improve internal governance structure, etc. At the same time, perfect social insurance fund investment risk management system, including the risk early warning system and risk compensation system, etc.