Social Security Fund Investment Research

Investment of Social Insurance Fund (SIF) combining the economics of pensions with modern investment theory is a matter of the last two decades whether home or abroad; in fact, systematic view has happened since a few years ago. With the boom of New-classical macroeconomics in 1980s, funding-SIF comes to be analyzed in the big frame of national economy as a endogenous variable, while under the dominance of the political economics, the pay-as-you-go SIF only takes on the function of redistribution, even hindering the growth of private savings and capital formation. On the road explored by Markowitz, modern investment theory makes advances along the substitutive relation of risk-revenue. EMH and FMH after 1980s explain the general and multi-dimension equilibrium.From the practice view, SIF investment has happened the historical stage, with the population aging, the great load of government expenditure, financial innovation and financial deepening, etc; especially when the success of SIF management reform characteristic of competition and privatization hi Latin America, it reached at the top of the latter. As a matter of fact of the tendency overwhelming all over the world, our SIF entry into the capital market and competitive management is a choice without question, which certainly influence our economical system and social institute for ever.Main conclusions of the papers are scattered in chapters, the induction follows as.1. To analyze SIF entry into capital market, it need from the view of economic growth and development and macroeconomic, especially the view of the investment related to savings and capital formation and social welfare.2. The management mode of competition and market system in SIF in investment is a consistent tendency. It is helpful to enhance efficiency and improve welfare as itself, as well as compatible with the current market system reform.3. From the view of current conditions, whether SIF itself, or government departments, or market, all are lack of correspondingly theoretical recognition and institute foundation. Accordingly, it is high time to construct the infrastructure by and by and put a stage on which the SIF will show.4. On the investment management mode, it is my recommendation to choose modified-collective mode, one that SIF is collected by public unites and deputed to private SIF management companies selected to invest. Doing so has increasing revenue to scale and helps to compete.5. On the portfolio, SIF varies with the different characters and the degree to the maturity of market and the level of regulation, stage by stage. Therefore, the enterprise annuities and private accounts can invest in securities market on a large scale, and unified-collected part should mainly invest in government bonds and banks.6. On investment regulation, strict draconian regulation mode is needed in transition period. With the maturity of fund management and regulation and capital market, the regulation mode can gradually transfer to the prudential one.