Theoretical Analysis And Application Research For Mezzanine Investment Of Insurance Fund In China

This thesis is written in the background of China's economy entering the "New Normal" and revealing three characteristics:development speed changed,structure optimized and driving force converted."Being divorced from reality and shifting towards virtuality" and small and medium enterprises' difficulties in financing,etc.are constantly bugging the healthy and sustainable development of economy.In face of this reality,mezzanine investment of insurance funds well introduces the fund into real economy,which meets the demand of SMEs for financing,because of its capital attribute and operation mode.For insurance organizations,mezzanine investment is a new channel for capital utilization and income.Thus,mezzanine investment of insurance fund is indeed a strategic choice for the nation,the market and as well as the enterprises.This thesis intends to push institutional and supervision innovation by theoretical innovation on the basis of practice and the reality of China,combining socialist political economics with Chinese characteristics and western financial economics and,knowledge system of applying insurance fund and mezzanine investment,complying with the value concept of "the function of insurance comes first" and "blue chip investment",to contribute to the front edge of science and service the insurance industry as well as society development.Under the guidance of this research objective,this thesis starts from building the theoretical foundation of mezzanine investment of insurance funds and chooses the typical countries which can represent an international vision to analyze the realistic factors that constraint the mezzanine investment of China's insurance fund.And under the support of relative policies and supervisions,it conducts game analysis and pricing research,so as to raise perfecting methods and measures for improvement.This thesis has seven chapters.The first chapter is Introduction and the second chapter is theoretical foundation which gives theoretical support respectively from Marxist political economics,socialist political economics with Chinese characteristics and western financial economics.The third chapter is international perspective which chooses America,Europe and Japan as the study objects.The fourth chapter is about China's practice,which will be studied from the practice's basis,status quo,typical cases and existing problems.The fifth chapter is game theory analysis of China's mezzanine investment of insurance fund,in which there will be parametric analysis and numerical simulation through building game models.The sixth chapter is the analysis of the pricing of mezzanine investment products of China's insurance fund,including the selection of pricing method,the building of pricing models and realistic simulation.The seventh chapter is the countermeasures and suggestions for perfecting the mezzanine investment of insurance fund of China,which will be put forward from legal,policy,supervision,market and enterprise perspectives.The main viewpoints of this thesis are as follows:The first is,mezzanine investment was born from enterprises' financing need and this kind of investment has multiple characteristics that match with insurance fund's:the"long-term" feature of mezzanine investment matches with the long-term asset allocation need of insurance fund;the dual features of equity and debt of mezzanine investment matches with the diversified asset allocation need of insurance fund;and the tradability of mezzanine investment matches with the need of insurance fund for flexible asset allocation.Secondly,developed countries such as Europe,America and Japan have had relatively mature operation mode of mezzanine investment of insurance fund,which is mainly manifested in:first,the low interest rate environment and the change of supervision policies have pushed the development of mezzanine investment;second,mezzanine investment is usually made through professional platforms;the third point is mezzanine investment usually adopts the indirect investment mode.However,the differences between developing countries and developed countries in terms of market economy patterns and the maturity levels of capital market decide that China cannot copy foreign patterns.Thirdly,China's mezzanine investment market burgeoned in 2005 and since 2014 has increased rapidly,but the use of insurance fund in mezzanine investment is still at the starting point.In terms of laws and regulations,policy and measures,and supervisions,mezzanine investment using insurance fund is yet to be further perfected.And the mezzanine investment tool in China has only been limitedly used and its ability to serve the real economy is very limited,too.What's more,the market risk,policy risk,default risk,protocol risk and operation risk during the operation process all need to be prudentially prevented.Fourthly,the mezzanine investment of insurance fund involves different interest bodies,and the investment strategy is subject to the rationality and study ability of the game participant.This thesis discovers several laws of development for insurance fund in mezzanine investment,such as:the volume of transaction of mezzanine investment is in direct proportion to the capital amount invested by insurance organizations;the deposit interest rate and the earnings ratio of securities are in inverse proportion to the transaction volume of mezzanine investment.Fifthly,the models for pricing financial derivatives are abundant and diversified,which provides a substantial room for selection of the price of mezzanine investment products.In this regard,both the western classic model and the optimized model developed by Chinese scholars have measured a theoretical value that deviates from the real value,so in future,we'll take full consideration of the boundary conditions and final value conditions to develop more precise pricing models.As for the pricing of preferred stocks,the analysis shows that as the shareholder,he would like to pursue the risk and yield suitable for himself instead of maximization of preferred stocks.The sixth point is that the mezzanine investment of China's insurance fund should make use of both the "tangible hand"(the government)and the "intangible hand"(the market),both laws and regulations and supporting policies and measures,and both supervisory bodies and insurance organizations,thus it can well develop and be well controlled and supervised.Furthermore,the mezzanine investment decisions made by insurance organizations are not only driven by the internal force of the diversified profit models,but more importantly,out of the fundamental requirement of "finance servicing real economy".So we need to stick to this fundamental,and develop the service ability and level of mezzanine investment.