Financing Social Security And Lessening State-owned Stocks

The financing modes of social security system are divided into three types: pay as you go, partly funding, completely funding. The world financing mode reforms of social security system prove that "partly funding" is the ideal objective mode in the modern society. The social security system of China has undergone three stages from the foundation of the country to the current period and the financing mode has changed from "pay as you go" to "partly funding". But in the process of this change, there have occurred intangible debts in the personal accounts of the social security fund. The intangible debts of the social security fund have brought about a series of difficulties to the enterprises' reforms and national economy, meanwhile it affects the new social security system to run rationally. In order to fill the emptiness of the social security fund, the government has started to find new financing ways. According to the working principles of social security system, two ways can be used to fill the emptiness of fund: one is to increase revenue and reduce expanding inside the system, the other is to invest outside the system. But the first way and the financial subsidies of the second way are not feasible at the present in our country. Under the background and basing ourselves on the China's realities, the article mainly analyses the necessity and the reasonability of the other way of investment outside the system--lessening state-owed stocks. Then the conclusion is drawn out: lessening state-owned stocks is the new financing way of the social security system. To lessen state-owned stocks in order to fill the social security fund is a kind of complicated systems engineering. It involves the interests of the country, the companies and the investors, it will affect the balance between supply and demand of capital market and it will also effect the development and perfection of the social security system. In view of the above reasons, before designing the concrete proposal, the article researches some questions related to lessening stated-owned stocks and filling the social security fund. On the basis, the article sets forth the concrete proposal and raises some supporting measures...