The Impact Of Share Price Index Futures On The Social Security Funds Investment

The social security system is an important issue relevant to people’s livelihood, Social Security Fund’s funding gap due to the degree of aging, gets more and more attentions, Social Security Fund is one of the important institutional investors in China.Value-added pressure to the social security fund, so the choice of its investment also brought a high standard.Investment in social security funds in order to preserve and increase the value must be through the capital market.After the establishment of the National Social Security Fund Council, China’s social security fund investment starts a big step growth The proportion of investment in capital market is also growing, especially on the stock market investment accounts for most of the growth.Social Security Fund investments must comply with the safety of the Social Security Fund, increasing the value of the pressure make us must enter the capital market stock market. Faced with the problem of systemic risk, relying solely on the investment philosophy of decentralization cannot effectively eliminate. The need for new financial instruments to reduce the risk of financial derivatives in the share price index futures can be a good take on this role.Share price index futures are financial derivatives, usually that is the share price index futures have a high risk and high yield characteristics. But the actual operation, we can artificially avoid these risks, but only use share price index futures on the beneficial aspects of security in the social security fund investment. Especially in China, social security funds relating to all aspects of people’s pension into the market this news came out, the public did have a dispute, indicating that in our country has a more severe security requirements of the social security fund investment, and this requirement and in disguise similar to the share price index futures such financial derivatives could be used to improve the security of financial instruments into in general, people only see their side because of the high-risk arbitrage and high leverage due to In this view, since you can use share price index futures to hedge to avoid previous portfolio can not avoid systemic risk, not just because of the financial crisis and the European sovereign debt crisis brought panic on financial markets will not use these good financial derivatives. This is also in China’s social security fund investing, few share price index futures research reasons.Social security fund investment in research focused on the social security fund investment performance analysis and management of social security funds, a major study of existing investment is efficient, is mainly reflected investment income of social security funds; another major from the investment should be how to regulate, mainly the security of social security funds starting to consider. This paper aims to use share price index futures hedging analysis of existing social security fund to invest in the stock market portfolio, observe whether the share price index futures can be used as part of the Social Security Fund’s investment portfolio which is both China’s social security fund investment management recommendations, is also investigated from the copy of the Shanghai and Shenzhen300Index on the combination of our existing social security fund to invest in the stock market. This can be seen, the degree of decentralization of China’s social security fund to invest in the stock market, although not absolute proof, but can also reflects our social security fund to invest in the ability to eliminate non-systematic risk.