Analysis Of Interaction Between Pension Funds And Capital Market

The pension funds are the important economic base of sustainable development of the social security system. With the quickening of the aging population process, the aggravating of financial burden of social security day by day, the value-added request is higher and higher for that the pension funds enter the capital market. At the same time, the further improve of capital markets also need the participation of pension funds. Their interaction is a reciprocal process. Only the existence of a more comprehensive and healthy capital market can guarantee to preserve and increase the value of funds smoothly. However, the pension funds of our country are in several problems: The fund-raising channel of the funds is not smooth; funds management is disordered; investment running is inefficient; prevention of investment risk is unfavorable; value maintaining and increasing is difficult to realize; and supervision is weak. Also the capital market has several problems: Variety of financial instruments is not enough; contingent of institutional investors is immature; The investments'philosophy is unhealthy and the structure of listed companies is irrational. These problems seriously affect value maintaining and increasing of pension funds, make the speed of payment acceleration is much faster than that of collection running and affect the development of national economy. So the research on the positive interaction of pension funds and capital market has an important theoretical and practical significance.The paper divides into five parts. Chapter 1: Major of the first part is a fundamental description of background of the research, meaning and methods. Chapter 2: major of the second part is review of related meaning of pension funds and capital markets, to further the interaction between the two, to provide theoretical foundation for explore the specific interaction between capital market and pension funds. Chapter 3: First clear the necessity of interaction between the two. then a more microscopic analysis of two basic interaction paths of pension funds and capital market:from pension funds to capital market,from capital market to pension funds. And based in the analysis of path provide three major carriers interactive environmental factors in macroeconomic : the healthy environment of investment and management, improved system of investment and management, standardized environment of investment. Chapter 4: Deep into the history of our country and the actual situation, put forward remaining issues exist in Chinese interactions between pension funds and capital market. Chapter 5:Finally in the fifth part on the basis of the above, with foreign practice of operation and supervision in the interactions of the two, to explore suitable interactive path, and environmental improvements in respect of enlightenment for Chinese pension funds and capital markets.