Research On Raising Social Security Funds With The Reduction Of State-owned Shares

The elastic collection crisis and rigid payment crisis of social security funds have resulted in great deficiency of the funds and are severely challenging current social security systern. Social security is a topic that concerns the whole society. The Central Party Committee and State Council have proposed to set up a social security system that has multi—channel fund resources, standardized security scheme and socialized management and services, which is independent on enterprises and government institutions. The core of the system is a stable and reliable fund—raising scheme. Many experts and scholars have endeavored to study and research fund—raising approaches like "fee—to—tax", "social security lottery", "enterprise annum", "financial subsidy", etc. Based on practical situation in Hebei Province and combining theory and practice, this thesis researches into the social security fund—raising approach through reduction of state —owned shares, which has a-roused great attention of the whole society, especially in the capital market area. The thesis focuses on the basic principles to be followed in the reduction of state— owned shares, concrete reduction approaches and the problems to be resolved during the course. It aims at the smooth implementation of the reduction and the stable and robust development of the security market.The whole thesis comprises four chapters.In the first chapter, the far—reaching influence of the reduction of state — owned shares is analyzed. Taking current laws and regulations, experiences from both home and abroad and practical situation in Hebei Province into consideration, it analyzes the feasibility of reducing the state — owned shares and goals to be a-chieved, which provides foundation for establishing principles and approaches for the reduction.In the second chapter, basic principles to be followed in reducing state—owned shares are discussed in full detail. Obscure ideas on the reduction options are clarified and the feasibility and necessity of security fund—raising through the reduction are further proved.In the third chapter, basic reduction options and primary scheme designs are put forward after analyzing ways and approaches in reducing state —owned shares home and abroad comprehensively.The fourth chapter puts forward potential problems that deserve attention and solution in the reduction process for assuring the smooth implementation of the approach.Finally, the thesis is concluded by brief problem — solving strategies derived from the above analysis.Innovation is the ultimate goal of this thesis. The debates over supplementing social security funds through state — owned shares nearly reached the white hot point after 1998. Especially after the enforcement and thereafter abatement of the regulation of raising social security funds through state—owned shares by the State Council, lots of viewpoints and resolving options arose. This thesis focuses on the principles to be followed and approaches to be adopted in the reduction of state — owned shares and strives for elaborating these two aspects. It not only clarifies some obscure ideas in this area, but also has practical directive importance in the implementation of the approach.