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The Study On Multiple Investment Of Pension Funds In China

Posted on:2007-12-18Degree:MasterType:Thesis
Country:ChinaCandidate:Z H WuFull Text:PDF
GTID:2179360182471617Subject:Social security
Abstract/Summary:PDF Full Text Request
Pension system is not only an important social system but also an important economic system. Since 1980s,because of the external factors such as the aging population and the slowing pace of economic growth and the internal factors such as mode choice and institutional design of pension system, the traditional pension system named pay-as-you-go faced crisis .Countries in the world have reformed their pension systems, funded pension system was introduced. The pension fund was invested into capital market. The pension fund investment practices in the world accumulated much successful experience and failing lessons.Because of the aging population, the pension income in the pay-as-you-go system could not satisfy the pension expenditure. China has begun to reform its pension system since 1990s.In the new pension system, only the pension fund be invested to achieve certain return yield that the pension system would be sustainable. The lag of the capital market restricted the pension fund enlarging its investment channel and achieving high return. This article studies how to enhance the investment return of the pension fund based on the reality that the pension fund is in the initial phase and our capital market is undeveloped.The chapter 1 is an introduction. It mainly introduces the study's background, object, content, structure, intention and method. It also defines several terms which are relevant with pension fund investment.The chapter 2 explains the international pension system reforming course and reforming direction, also introduces the pension systems and pension fund investment practices of several typical countries such as America, Canada, Chile, Singapore and Japan in detail. Then it summarizes the main characters and tendency of the international pension fund investment practice.The chapter 3 studies Chinese pension system reform and pension fund investment practice. It introduces Chinese pension system reforming course, the scale and investment actuality of the pension fund. Subsequently two formulas are used respectively to analyze that in the new system the real yield on the fund inindividual account and employer pension must be equal to or higher than the real growth rate of wage. We need enhance the pension fund investment performance.The chapter 4 points out the main problems that have existed in Chinese financial market including the underdeveloped financial market, unreasonable financial structure, the absence of capital market system, the bad investment environment and high risk of stock market , the partition of bond market and the non-market-oriented bond interest, etc. These problems restricted the pension fund enlarging its investment channel and achieving high return. The last part of this chapter is an empirical test. Using the financial market data, I calculated the rate of return and the risk of the pension fund investment portfolio. The result shows that the pension fund couldn't enhance its investment performance through capital market.Based on the analysis of the previous chapters, the chapter 5 put forward policy proposals from 4 aspects to enhance Chinese pension fund investment performance. The first is strengthening construction of capital market system, insisting developing goal of marketization; the second is establishing a new pension fund investment management mode which is marketization and privatization; the third is establishing an investment supervision system which fits the new pension fund investment management mode; the fourth is to construct a risk management system for the pension fund investment.
Keywords/Search Tags:pension fund, capital market, multiple investment, policy proposal
PDF Full Text Request
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