The Research On The Bidding System’s Influence On Investment Behavior Of Social Security Fund

Since2003, National Social Security Fund has invested the social security fund into the capital market in the manner of investment trust. By2013within11years,the rate of return on investment of the social security fund was significantly higher than the rate of inflation in almost every year. The social security fund achieved good returns in the capital market, in contrast to heavy losses of individual investor in the domestic stock market. The reasons for the social security fund achieving amazing investment returns is:the bidding syste can provides effective management institution exiting system through the reputation incentive mechanism for social security fund management, and National Social Security Fund would evaluate the investment manager after expiration of contractor or renewal of contract for one year. This approach not only maintains the healthy development of the social security fund in the capital market, but also arouses the enthusiasm of the social security fund management institution, ensures the yield of the social security fund, improves the operating efficiency. The study of the influences of the biding system on the behavior of the social security fund not only has important theoretical significance, but also has practical significance.Firstly, this paper demonstrates theoretical significance of the influences of the biding system on the behavior of the social security fund, defines the concept of the social security fund, explains the investment management and the sources of funds of the social security fund, states the organization structure and the principal-agent relation of the social security fund investment management and indicates that the principal-agent relations between the National Social Security Fund and the fund managers is the most important one, and then illustrates the mechanism for the influences of the biding system on the behavior of the social security fund. Through the reputation mechanism, the multiple games is proceeded between the National Social Security Fund and the fund manager and finally good managers are selected. Secondly, this paper applies the influences of the biding system of ITM model research on the behavior of the social security fund, chooses four typical fund portfolios to investigate whether the investment strategy is identical when they are in in the tender pressure and no pressure, which finds that the invest strategies adopted by the social security fund are different. Eventually, this paper gives the research conclusions and policy implication, puts forwards some policy suggestions about learning from foreign experiences and enriching the social security fund.The conclusions of this study are as follows:Firstly, the council for social security fund selects the best fund managers through bidding system. Outstanding fund managers make the social security fund have very good performance in the capital market through their professional management and operation ability, to achieve their own value of the goal; Secondly, except for2008, the social security fund investment income rate is far higher than the rate of inflation and one-year deposit interest rate, this shows that, in reality, the social security fund maintain and increase their value; Thirdly, through the empirical test of ITM model, bidding system has an important influence on the social security fund’s investment behavior. With or without bidding pressure, the social security fund’s investment strategy is different. In the middle of the year without pressure, fund managers generally take the contrarian strategy. At the end of the year with pressure, fund managers take the momentum strategies in order to run for their short-term performance.