Social Security Funds Invest In Capital Market: Theoretics And Empirical Analysis

The enhancement of the social security system is becoming more and more important in establishing , improving , and developing china's socialist market economy system . The social security funds is not only part of china economic life , but also relate to everyone's aging , illness and daily life . Why the social security funds must invest in the capital market and how to operate are the problems must be resolved . The paper will focus on above issues , and through empirical analysis to present investment tools and portfolios.First of all , the paper characterizes the basic theories of the social security system , including the social security system, the social insurance , the social security funds , the endowment insurance funds and the necessary to introduce the individual account .Based on those theory we probe into the relationship between the social security funds and the capital market , and bring forward the necessity of the social security funds to invest the capital market and the financial tools can be choose.Then through the empirical analysis we found that invest on the index fund is better than the present strategy we use . Base on the conclusion , using the capital asset pricing model , we focus on the portfolios the social security fund could devise after they entered the capital market .After quantitatively analyzing the income-risk in chinas stock market(the Shanghai 180 index is an example), the national debt and the bank deposits , then use them as means to construct different portfolios and calculates the income-risk data of different portfolios.