Keep And Increase The Value Of China Social Security Fund

On September 25^th, 2000, approved by the Central Party Committee, the State Council decided to establish the State Social Security Fund and the National Council for Social Security Fund, for collecting and accumulating social security fund, further improve the social security system. The State Social Security Fund began to operate under the management of National Council for Social Security Fund from 2001, as a solid material fund of social security system, the establishment of social security fund is of huge significance, especially in its effective role of reinforcing the economic strength of social security system.On 2003, the State Social Security Fund entered stock market for the first time. Although for more than 3 years of capital operations experiences, the increment of the Social Security Fund is not entirely as desired. Till the end of 2005, the gross asset of SSF is 211.787 billion Yuan, in the time realize the income 5.29 billion Yuan, and the realization income rate is only 3.12%. At present, the State Social Security Fund operation system is still in the initial stage, the invest channel is single, the property income rate is low, simultaneously, compared with the aging of population of China, the social security fund still have a large fund gap.Based on the question of the social security fund, this paper will focus on how to strengthen the investment dynamics and speed up the investment steps, cause the SSF able to keep and increase its value in the better legal environment.This paper mainly includes five chapters. Chapter One describes the theory about the social security fund: firstly to define the social security fund on the strict limits, differentiate the State Social Security Fund and the local social security fund. It is also explained the quality and function of the social security fund, the necessity and pressingness to keep and increase the value.Chapter Two discuss the practice and the experience to keep and increase the value of the social security fund, It is explained the investment operations about the developed countries and the developing countries. Borrowing the experience of successful modes could provide precious experience for keep and increase the value of the SSF.Chapter Three explains the important significance of the establishment of the SSF. Because of the aging population and the drawback of the local social security fund, so it is very necessary to set up the SSF. As a large fund provider, the entry of social security fund into the stock market is of great significance.The Forth Chapter proposes some tentative plans to keep and increase the State Social Security Fund: It should be defined the invest principle and invest range; It also proposes three kinds of effective investments directions. It is believed that through the management of portfolios on the capital market, we could better avoid investment risks, attain the goal of keeping and increasing the value of the SSF.The Fifth Chapter proposes some advices about the supervision of the operation management. It is very important for the SSF to set up a standard operation supervision system as soon as possible. There are two links: First, we should recognize the qualification of the operation organizations; Second, we should supervise the invests policy—making.According to the conservative investment way of USA, the theory acts suspect and worry about the State Social Security Fund to enter the securities market. This paper analyses this opinion, we think as a developing country, the conservative investment way is not suitable for China, It is unable to deal with the serious payment crisis. The successful experience of Chile told us the fund can enter the stock market in a conditional and limited way. In fact, the conservative investment way of USA is facing the stern challenge of payment gap, it shows the tendency of the reform of the social security fund. So we think the State Social Security Fund should be continue to be engaged in the negotiable securities investment, it can be invested in a decentralized way and seek scientific and effective portfolios. Open-end fund is a first-choice investment carrier. Therefore, the viewpoint of this paper has a certain innovatory significance.