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Capital Market Effects Of The Pension Insurance Fund Research

Posted on:2010-06-23Degree:MasterType:Thesis
Country:ChinaCandidate:Y W LiFull Text:PDF
GTID:2199360278978714Subject:Social security
Abstract/Summary:PDF Full Text Request
China's pension funds faced with tremendous pressure on the preserve and increase the value. China is the world's fastest-growing aging population one of the countries, not to the old rich. It is estimated that in 1990 every 100 working-age population, the elderly dependency 13.74, 15.60 custody in 2000, and in 2025 were raising 29.46, 48.49 were dependent in 2050. Although in the past few decades has succeeded in controlling the population growth rate of 0.6%, to ease the pressure brought about by population expansion, but the absolute decrease in the number of population at the same time, labor accounted for the reduction of the proportion of the population has also posed serious challenges to social security. Solutions to this problem are no more than two ways, one to increase the rate of pension payment; second operation to broaden investment channels to increase their value. However, payment rates will be reduced to raise the current earned income workers, the impact of people'consumer enthusiasm, in the current situation is not conducive to China's economic growth.At the same time, China has accumulated some of the old-age insurance system design, because the introduction of individual accounts is to mobilize the enthusiasm of the insurance and fund investment market. If you do not start the investment fund market, the Fund for the establishment of personal accounts will have little significance, but also high management costs. Thus, the solution to this problem lies in the breakthrough adequate funds to promote access to capital markets and efforts to improve investment rate of return.On the other hand, China's capital market efficiency and relatively low capacity, in 2008, China's total investment in fixed assets over more than 10 trillion; contrast is: According to statistics, in 2008 1 in November a total of 113 Chinese enterprises in the territory of capital markets, making a total of 21.829 billion U.S. dollars of financing, the average corporate finance 1.9.3 billion U.S. dollars, listed the number of financing and the average amount of the financing were in the same period a three-year low. This shows that economic development in the entire fixed assets, the capital market does not play a role Preserve and increase the value of pensions and capital market development is closely related to the healthy development of a capital market .a road of the level of social welfare steadily improving,the sound development of the economy worth exploring.Exploration in this way, pension funds as institutional investors can play a huge role in achieving the following three effects: first, pension funds can play a responsible role of institutional investors, making active shareholder, participation in corporate governance, fostering a large number of operations,make excellent performance of listed companies to re-cultivate the confidence of investors. As Premier Wen Jiabao has said, confidence is more precious than gold things; Second,by the National Social Security Fund Council, in charge of the funds also can serve as a stabilization fund type of motherboard market to play its stabilizing role when the market blindly into the bad circumstances, because our country is not yet a mature stock market stabilization fund, in this case, the social security fund taking the lead in the market should be a very positive signal. While the nature of it, which is equivalent to stabilization fund category. This part of the social security fund money not immediately required, and every year there are new funds to enter, aside from the Stabilization Fund as a source of funding is the most suitable. Third, private equity investment in China's pension fund is also to play, entrepreneurs can obtain returns of investment channels, but also government investment to avoid invalid by the market to melt a channel. Particularly in the present, our country surrounded by the global financial crisis, a number of key industries, enterprises need a more direct guidance from the government, from the capital, technology, management ideas, markets and so the responsibility of guidance.Above-mentioned three kinds effect smooth comes true , depends on the pension fund director making policy rationally, such as: The reliable Portfolio, taking the company governs as guiding accurately invests,financial affairs, persistence and community responsibility as indicators for performance...
Keywords/Search Tags:Social security pension funds, Capital Markets, Portfolio, Stabilization Fund, Pension activism, Private equity funds
PDF Full Text Request
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