Discussion On The Operation, Valuation And Appreciation Of Chinese Social Security Funds

As a foundation of social security, social security funds and their good performance are considered to be central cycles of social security system.Judging from the working conditions of our social security funds at present, on the one hand, as result of social economic system's being reformed, these funds haven't covered a large range in society, and have problems such as undesired tax levy rate and big gap between levy base and actual income. On the other hand, expenditure of social security funds is rapidly increased by the fast pace of population aging, upgrading of social welfare funds and invisible debt problems to be solved in reforms of partial accumulative system. However, the existing surplus of social security funds is even threatened by potential inflation with inadequate investments because of traditional thought's binding. All these factors will lead to problems of the valuation and appreciation social security funds.In the terms of current working conditions in our country, this thesis analyses overseas practical experiences in valuation and appreciation of social security funds, and deduces some beneficial illuminations. Government and administration departments should should expand channels of funds investment, and grasp the golden time at present of rapidly developing capital market on the basic principles of valuation and appreciation. They should apply not only traditional tools of capital market to avoid risks and appreciate values, but also various new investing tools of financial and real capital market to compound investments and raise rate of returns on investments. Meanwhile, in order to ensure valuation and appreciation of social security funds successfully, it is important to strengthen the outer environment construction of investment monitoring structure and legal systems.