The Study On The Investment Of Insurance Funds In Railway Industry

Large-scale construction of the railway network can not only promote the country's economic growth, but also mitigate the impact from the global economic malaise to the national economy. Help to reduce regional disparities and to create conditions for balanced economic development. Thereby, according to the research group of "Railway development planning and joint-venture railway investment and financing mode 'research", there will very severe financial constraint of China's railway capital in the next decade. There will be a 4 to 12 years hard time of China's railway if the economic trends will still. It needs to take the necessary industry policies to address the issue of railway investment and financing. Broaden the financing channels, introducing the social capital and establishing the Industrial Investment Funds, are the expert's consensus proposes. The long construction period and long payback period of railway make investors who afraid the liquidity risk don't like to try. Only the capital with the same characteristics could maximize the investment returns.Since 1980, the insurance business resume in China, the insurance companies brought together a large amount of social capital with the rapid development of insurance business. As the only way to increase the value of capital, insurance investment need expanded investment channels, a matched balance, diversified investment risks. For the majority of life insurance funds whose period are more than 20 years, the short-term investment not only increases transaction costs, and increases the duration of assets and liabilities do not match the risks posed. Instead, long-term investment with low level of risk and stable future earnings is the best way to use life insurance funds. With the introduction of 2006 "the Administration of Pilot for indirect investment of insurance funds for infrastructure projects "The insurance fund investment in railway becomes possible and there combination developed from theories to practice.Based on the analysis of the background and context of policies and regulations, this article had proven the conjunction between the insurance fund and the railroad project. Five feasible access modes were proposed with emphasis on the fund trust pattern. And then this paper made the contrast of each patterns' feasibility and the good and bad points. Finally by making secure analysis, the paper proposed how to carry on the risk guard during the investment process, as well as the policy suggestion.