The Restrictions Of The Interaction Between Occupational Pension And Capital Market In China

With the rapid growth of aging population, the occupational pension fund as a important economic system of dealing with it is concerned by the whole world extraordinarily. The long-efficiency foundation of the occupational pension is the inflation-proofing and increment of the fund, in other words the occupational pension fund can't really deal with aging population unless keeping certain rate of increase. For this reason, putting the occupational pension fund into the capital market is an inevitable choice. In some countries, these two interact benignly, but in some other countries, they seem to have nothing to do with each other, or even produce negative effects. In the long run, the occupational pension fund will occupy more and more important status in our country's endowment insurance system. How to promote the occupational pension fund and capital market interact benignly is a very important issue in the context of financial industry mixed and financial crisis. Summarizing the evolution route and the restrictions of the interaction between these two in foreign countries which combined with China's national conditions, and describing the policy advice to carry out the interaction between these two of China have great meaning in theory and practice.This paper focuses on the theoretical framework of the interaction between occupational pension fund and capital market and concludes that the common restrictions of the interaction between these two. Furthermore, we use the practical situation of the interaction between occupational pension fund and capital market in China, on the basis of common restriction, to describe the policy advice to carry out the interaction between occupational pension fund and capital market of China.Chapter One is the introduction of this paper,includes the background, meaning, literature search and so on.Chapter Two focuses on the theoretical framework of the interaction between occupational pension fund and capital market, includes active and negative interaction. In the active aspect, occupational pension fund affect capital market by providing long-term, stable supply of funds, impacting corporate governance, promoting the innovation of financial instruments and financial industry mixed. And the market conversely promotes the development of occupational pension fund by opening up new sources of fund and increasing investment profit, etc. In the negative aspect, the occupational pension fund may cause the increasing of the foam of capital market while entering the market, and may aggravate the speculativeness and fluctuation of the capital market; the capital market may increase risk of the occupational pension fund, etc. We conclude general restraint of these two: macroeconomic condition, the design of occupational pension system, the scale,structure and efficiency of the capital market, financial structure, efficiency of financial market and guide and supervision of the government.Chapter three introduces the relationship between occupational pension fund and capital market from international perspective. Comparing Australia and Czech, we conclude that the compulsory pension system, tax incentives, the development degree of capital market, financial environment and financial structure and economic system will influence the interaction of occupational pension fund and capital market. We emphasize the important of supervision because of financial crisis.Chapter four analyzes the interaction of occupational pension fund and capital market. By analyzing the current situation of occupational pension fund and capital market from the institution stratification plane, put the idea that there is no interaction but only facilitation in China. The reason is the condition of interaction between these two is not ripe. Take the occupational pension fund as an example. Firstly, the system of the occupational pension fund is still not wholesome, and the quantity is insignificant that enter the capital market. Secondly, as a green-hand institutional investor, the decide-making is not rational but speculative. Moreover, lack of tax incentives restricts the development occupational pension fund. Look at the capital market, because of imperfect system, the systemic risk is higher than average level, which can not evade by professional institutional investor.Chapter five is based on analysis of Chapter four, carry on the constraints of interaction between occupational pension fund and capital market. It mainly falls into the following aspects: The imperfect system of occupational pension lead to accumulation scale excessively small; the capital market lay too much stress on financing instead of investment and born in planned economy made it unsafe; the laws and regulations of occupational pension fund and capital market are imperfect; Lack effectual supervisory system internal and external; The financial system structure and the proportion of assets are unreasonable, etc.Chapter six is based on the practical situation of the interaction between occupational pension fund and capital market in China and experiences from abroad, put forward the policy advice to carry out the interaction between occupational pension fund and capital market of China: accelerate occupational pension system development and make it continually; carry out capital market reform vigorously; promote interaction via fund market. At the same time, in association with a series of reform policies: improving relevant laws and regulations; establishing the effectual supervision system and strengthen supervision, this is particularly outstanding under background of the financial crisis; setting up the occupational pension fund risk control system and dissolving the risk which come from capital market, etc.The innovation of this paper includes the following contents.1. The innovation of the topic. The paper introduces the method of system analyzing in the interaction analysis of occupational pension fund and capital market, analyzing the constraints of the occupational pension fund and capital market from deeper dimension including the political environment, economic and financial environment, occupational pension system, regulation and so on. We believe the occupational pension fund and capital market do not promote one-way, but the circulation relation taking the two as extreme point. These two are not only positive relationship but also negative and the purpose of this study are striving for creating the environment for positive interaction between these two.2. The innovation of the point of view. We use the practical situation of the interactions between occupational pension fund and capital market in China, on the basis of common restriction and under the background of financial industry mixed and international financial crisis, to describe the policy advice to carry out the interaction between occupational pension fund and capital market of China.3. In the international perspective, we discuss the interaction between occupational pension fund and capital market from the positive and negative aspects. Emphasize the experience of Czech, as its economic system is similar with China, and data of Czech is fresh for current domestic research.