Research On Improving Investment Rate Of Return Of Social Security Fund In China

The social security funds includes:state owned share reduction of funds and equity assets funds managed by state social security funds council, center offer, capitals collected by the way approved by state council and the social security capital of investment return collected by the central government. Although more than10years had passed since the found of the social security funds with multilevel improvements and certain returns, it is far from ideal efficiency in term of rate of investments return so more work has to be done. The investment and operation of social funds influence the development and stability of our security system in the increasing economy and it is emergent to make good use of the funds, for instance the pension to ensure more people with sense of security and a secure age. More woks has to be done in the development of the funds to avoid problems like it can not meet the demands due to the devaluation or the expected rate of return fails to obtain for improper investment.Because we faced lots of challenges with low return of rate since it was put in public, so the Social Security Funds Committee loosed restrictions on the investment varieties and chose and created some financial tools to investment of social security funds, thus to strengthen and optimize the investment management through improving in policies, investment environment, construction channels, etc.The investment and operation of social security funds exerts a great role in the system construction and the development of the economy. Many countries have been exploring on this topic to reach the maximum revenue based on the security of social funds to make the system could meet the demands of guarantee people’s life and a stable society. The problems showed in the procedure investment operation demands diversify and multi-level ways to solve while resorting to rational model of management and investment operation and more investment channels. Meanwhile, the exclusive bank of security or state owned banks of foreign investors could be established with creative reform ways step by step. The Investment Company of security funds can be established or accredit to the funds management companies with high credits to lessen the risk of investment and maintain a long term revenue through joining in the infrastructure in face of global financial crisis and finally sodality the management of SSF and the level of social security.Since at present china have large population, poor economy and the early ageing, so a scientific supervision to investment operation of social security funds is chosen, which is of great significance to strengthen the management and security of the operation and reach maximum revenue.The thesis would analyze the channel of collecting capital,and operation ways, efficiencies, rate of returns of investments to find the main causes of the problem. With advices and measures to deal with the problems, the thesis aims to help improve the efficiency of the return of rate and deal with risks of devaluation of the funds and of high expenditure.