Social Security Fund Stock Index Futures Hedging And Strategic Analysis

A large variety of developed and developing countries are facing the problems caused by the progressive aging of the populations, which impose a challenge to endowment insurance system. The traditional endowment insurance, which is pay-as-you-go and based on the occupational pension system of government, can't afford for the aging challenge .The balance between the aging demand and supply become imbalance, so it is important to let the capital marker enter the endowment insurance to ensure the value. While because of the special characters of the security fund, one of the most important investment principles of the security funds is the security and liquidity. Then how to choose the investment products is most important for security funds. In China, the security system reformed so late, and the investment products are too limited, only limit to deposit; national debts; bonds and stocks. While, some financial innovational products, for instant, share index investment, may help security funds reach both the safety and benefit standards in theory.There are three main parts in this paper: in the first, which is the same as chapter one, some basic problems will be explained, including the significance and the creativity of the paper; in the second part which is included by the next three chapters, some theoretic knowledge will be studied, for instance, in chapter two some related concepts are given, chapter three will introduce the present investmennt situation about Chinese secutrity funds since they entered into capital markets, and then analye the reasons why the benefits have not been so satisfied, while the corresponding investment situation of security funds in other countries will be introduced in the chapter four, through which some useful conclusions will be made; the core of the paper is just the third part, which is made of chapter four and chapter five, in this part through a mathematical analysis we try to demonstrate that share index investment could do indeed evident contribution on both risk control and benefit increase for secutriy funds. According on this econometric results, some advices and conclusions are give in the last chapter, chapter six.