The Investment Research Of China's Social Security Fund In Capital Market

The payment of stress in China's social security fund is becoming severe with the fast aging of populations advancement in China. To preserve and increase the value of social security fund, we should put it into the capital market to get better interests based on the safety comes first principles as well as multi channels to raise money, so that we can deal with the crisis of future aging of population.This paper starts from the concept and feature of both social security fund and capital market, it defines the scope of this study at first. Then it put emphasis on the relationship of the two, in another word, social security fund, as the fundamental material guarantee of social security system, should be put into the capital market, share the achievement of economic development, to make the function of social security system into full use. Meanwhile, the social security fund plays a major role in enriching the capital market and advancing the economic development. Next, it analyses the current situation of investment operation of social security fund in domestic, makes a positive comment on the results that the social security fund in the capital market has achieved. While there are also many problems existing in this field, such as the lack of efficient value-added approach, big risk of investment and etc, especially in the face of fast turbulent of Financial Tsunami, we should make a right comprehension of the relationship between social security fund and capital market, on the basis of making the guarantee of the fund, to enlarge the investment of social security fund in the capital market. Facing with these problems, the author makes an investigation on the overseas investment of social security fund in the capital market, with the analysis of investment experience in Chile, America and Singapore, to get the way of investment reform of China's social security fund in the capital market. The focus is that under the world economy recession, the social security fund should be taken in charge of reasonable investment in the capital market, according to the investment principle of safety and caution, to make sure its security and profitability in the capital market. We need choose the innovative investment tools, widen the investment channels actively, lower the risk of the investment, find the safe and reliable funds entrusted administrators. And also make a suggestion that the social security fund can be invested in the trust form as the project investment in big infrastructure. Combining with the current conditions that China's market is still a incomplete capital market, we should continue to deepen the capital market reform, to improve the market environment of social security fund investment, emphasize the responsible investment, the social security fund should take the responsibility of stabilizing the stock market, to realize the positive interaction between capital market and social security fund.In a word, as we take the reformation of China's social security fund investment, from the long-term, global and strategic height, we need measure the advantages and disadvantages from multi-angles; make the right policy choices, to explore a new road of social security fund investment with Chinese characteristics.