The Research Of Perfect Assets Proportion On The Value Hedge And Increment Of Social Security Fund

In China,based on relevant regulations, the traditional methods that government used to analysis Social Security Investment Portfolios are Bank Fixed-term deposit and National Debenture. Science the year of 2003 that Social Security Funds are allowed to invest in stock market , there had a dramatic improved in Chinese market place, such as vitality development in security markets; stable accumulated capital and cash flow; and more disciplined Financial derivative transactions. In comparison, it can be obviously found that during the same period, the return from National Debenture and Bank term deposit were decreased year by year. Meanwhile, as the number of people reaching retirement age is continuously growing, this caused the ratio of superannuation income to expense kept decrease, which significantly influenced the value of Social Security Funds. Hence, we should considered how to avoid and solve future Social Funds crisis, such as positively enlarge investment channels, and find out the perfect proportion between different investment portfolios. Both these methods could improve the return of Social security funds; avoid losing investment opportunities through using over-safe based traditional investment method; and start earlier preparation due to changes of population structure.This research paper is based on the assumption that the Social security fund is only available for invest in bank deposit, stocks and debentures. The paper will also assess their average income ratio, variance, and analysis their correlations. According to the research and analysis processes, this paper will firstly collect the data from three different income levels in Macroeconomic targets, which are Resident consumption index; Average citizen disposable income; and National GDP. The paper will then set their increase ratios as Superannuation funds target income ratio, and through using Markowitz Mean-Variance Model to build up superannuation security fund investment portfolio module. In the third stage, the paper will using the fixed income and return ratio to find out the most perfect proportion of the investment portfolios and lastly, obtain the results that how the proportion should be distributed when government decides using bank deposit, stocks and debentures as the investment instruments.After the result analysis, it can be found that there is a positive correlation between income ratio and the stock investment proportion. This would provide very helpful recommendations and suggestions to Chinese Superannuation Funds to participate and involve into stock market investment; enlarge investment scale; and advance the investment proportion,to ensure those methods can offer reference and suggestions.