Research On The Legal Rules And Regulations Of Pension Funds Into The Country’s Capital Markets Of China

On March20,2012, with the approval of the State Council, China’s cabinet, thesouthern province of Guangdong has taken100billion Yuan ($15.8billion) from itspension funds and entrusted them to the National Council for Social Security Fund fortwo years. Pension-fund investments will mainly go into fixed-income securities forpreserving or increasing the value. This paper focuses on present China Guangdong pilotoperation of the pension market and quantitative analysis of population surveys,combined with relevant laws and regulations to carry out a qualitative analysis of theproblems in the actual operation, integrated with the experience of other countries andabsorbed the forefront of domestic experts and scholars’ view to propose the relevantprogram of legal reform.Pension funds into the markets are the first time in China. The awareness andunderstanding of pension funds into the markets are the most basic part. At first, youshould understand the components of it, then to find which one coming into the capitalmarkets, and which market it goes. How to set investment target rightly to maximize theinterests is the promise of preserving or increasing the value. Besides, as it is the firsttime, vulnerability and lag of phenomenon will emerge in the related provisions. Thelaws and regulations involved in Risk prevention and supervision must haveinadequacies. The paper takes recommendations to perfect related legal institutions, fromthe domestic and international economic, legal and social aspects with literature studies,contraction, and survey and experience summary.Firstly, the paper start off with the three most representative and different stylescountries of the pension market operators, the writer analyzes the characteristics of legalinstitutions about the countries, combined with their social, economic and legal analysis,the writer summarized commonness and individuality by way of some aspects of the three countries pension market System. Second, the writer introduced briefly the specificcircumstances of China’s pension market from the beginning to the present, and thenanalyzed the achievements of China’s pension market as well as existent problems withthe actual conditions and relevant laws and regulations. Next is the key section of thisarticle, the writer analyzed that the pension markets must have the relevant legislativeprocedure, the principles of legal regulation; top priority lies in the relevant legal systemof specific issues--from risk control, supervision, management and other aspects of lawto start with. Finally, at the end of the full-article, would make a summary and also putforward the shortcomings of this article.