Research On Legal Issue In Capitalized Operation Of Pension Fund

China has established an initial pension system framework pillared on the elementarypension, the enterprise professional pension and the personal saving pension after a longand devious period of reform and development since the 1980s. The income and expenseof the pension fund has reached a considerably large scale. However, the pension systemis still far from being complete and standard. Among all its problems, the oldmanagement operation model, the strong character of planned economy and themonotonous operation channel have made it more austere for the maintenance andincrement of the value of pension fund. All these with the grand expense demand ofpension in the coming era have pushed the pension system in our country to a "crossroad",where the reform in the pension system in the past twenty years and the fate of the wholepension system are decided by whether the pension fund can operate efficiently and withregulation. Therefore it is compulsory for us to learn from foreign countries to search forthe way to improve the efficiency for our pension fund to utilize the capital market and tomake the maintenance and increment of pension fund come true. At the same time, the securities business in our country has entered a stage of adjustedand standardized development after more than ten years of rapid development, which willproduce a more stable and vigorous economic and financial system. The development ofsecurities market calls for institutional investors. The international experience shows thatinvestor structure, and institutional investor structure in particular, has become a symbolof the maturity and perfection of securities business in one country. As far as thesecurities business in our country is concerned, the percentage of institutional investor inall accounts is only 0.33%, and the stock value held by them is only 10.67% in all, whichare far from those in a mature securities market and have affected the further standardizeddevelopment in the securities business in our country. Thereby, transnormal and creativecultivation and development of institutional investors have become a must to promote thegeneral adoption of the market principle. Meanwhile the capital market structures inBritain and America have shown institutional investors and especially pension fund are ofgreat consequence in the capital market. Hereafter, capital markets require theparticipation of pension fund, and those without are not wholesome. In view of this situation, this dissertation is a research and proposal on legal issue incapitalized operation of pension fund, which is supposed to be of great theoretical andpractical significance in the management operation of pension fund and standardizeddevelopment of capital market. The dissertation is composed of four parts. In the first chapter, it analyzes the necessity and practicability of pension fund enteringcapital market with a reference to more advanced experience from abroad and the presentsituation in China. In the second chapter, it provides theoretical analysis and argument from a perspectiveof trust law theory on the systematic compatibility of pension fund run by trusteeship incapital market, with an investigation on practices in this field in Britain and America. Based on the previous two chapters, the third chapter analyzes legal relations incapitalized operation of pension fund with a center on the enterprise professional pension,and collates and stipulates rules and regulations on right and duty relationships betweenmajor parties concerned. In the last chapter, a proposal on the construction of supervision and managementsystem in pension fund operation in our country with a reference to internationalexamples for the norms and security of capitalized operation of pension fund. There is a main theme organically linking up all the contents of the whole dissertation:the necessity and practicability of capitalized operation of pension fund – theestablishment of pens...