Housing Fund Portfolio Management Methods Study

In 1991, Housing Accumulation Fund System was first established in accordance with Central Accumulation Fund system of Singapore in Hanghai. In the past 16 years, substantial social and economic benefit has been obtained. However many problems have appeared too. Especially, a lot of capitals of accumulation fund couldn't be kept or enhanced their original value but reduced, because these capitals just were saved in bank. In some time, these capitals were invested unsuccessfully or peculated because of lagging managing system and defect. More and more people required reforming this managing system and it is necessary to reform and perfect this managing method.With analysis of the advanced managing method of social security funds and that of the Accumulation Fund management of our country, the paper points out the defects of our management system and analyses the current reform trend: to transform the present Housing Accumulation Fund Management Center into an independent financial organization. After analyzing the necessity of reform, the paper creatively puts forward a new theory of Asset liability management in accordance with the characteristics of the asset liability of the Housing Accumulation Fund of China.The essence of the running of accumulation fund is in-debt management, which makes asset liability management of great importance, since it is directly related to the allocation of the fund and the pay ability of those in debt. Hence, the safety, fluxion and the value of fund should be guaranteed. Meanwhile, the future pay ability should also be taken into consideration. The investment planning and fund allocation ought to be arranged reasonably to ensure the safety of the fund and maximize the profit of it. Based on foreign Asset Liability Management theory and their practical application Stochastic Programming with simple recourse is introduced according to the features of the Housing Accumulation Fund management, the economic environment of our country as well as the direction of reform. The program take into consideration the fluxion of deposit and loan, budget restriction, capital restriction, fluxion restriction, policy restriction and legal restriction, etc. and uncertain factors. Therefore, it can improve the level of fund management comprehensively and promote the reform of Housing Accumulation Fund Management. Meanwhile, the problem of the high rate of fund deposition and the pinch of ways of increment of funds may be solved.Based on the above analysis, the paper takes recent year's capital in-debt circumstances of Shanghai Housing Accumulation Fund Management Center as an example to find its result with the help of the program. Consequently, the superiority of this creative method comes into evidence and reasonable proposal for further reform may be put forward.