Research On Investments On Affordable Housing Construction From Pension Funds

With the aging of our population, the existing old-age security system is facing enormous pressure and challenges. The pressure on the payment of funds for basic pension insurance is becoming ever greater. At the end of 2010, China’s pension gap reached up to 1.3 trillion yuan and was gradually widening. There are many reasons for this phenomenon, many of whom are external issues of institutional policy and investment environment, including the inside of the investment operation, human resource and management system.This paper consists of five parts. The first part (chapter 1) is related to pension fund and investment theory. This paper starts from the basic concept of pension fund and investment income, and describes the theoretical basis and practical background of the pension fund.Chapter 2 is about the status quo of two parts of the pension fund:basic pension insurance fund and National Social Security Fund. Analysis of their return on investment is also included.Chapter 3 is about the status quo of affordable housing construction in China. And analyze whether pension fund can invest in affordable housing construction.Chapter 4 is to analyze the ways pension fund can invest in affordable housing construction, such as trust loans, debt investments, mortgage loan securitization and covered bonds.Chapter 5 is to draw lessons from the investment operations of foreign pension funds. This part describes the success of the United States and Singapore. At last, we could get countermeasures of the development of China’s pension fund and affordable housing construction from several aspects.