Study Of Insurance Funds Direct Investment In Stock Market

From 2006, along with the stock markets rise in China, the proportion of insurance funds direct investment in the stock markets increased quickly, the strategy of insurance funds direct investment in stock market needs to be studied exigently. From Oct. 2007 to Mar. 2008, the stock markets has fallen nearly half, insurance funds investment in the stock markets faces big loss, the quickly rising of the proportion of insurance funds investment in the stock markets needs to be introspected. This article is focusing on these two practical points.The article brings forward the theory of insurance funds direct investment in stock market, Namely, direct investment of insurance funds in stock market can expand the scale of stock market and improve the structure of stock market, it can also increase insurance needs through stimulate economic growth and improve the investment earning of insurance funds, thus promote the development of stock market and insurance industry. The results of the empirical analysis about developed countries supported the theory. It also compares the results of developed countries and China by empirical analysis. It finds that the effect on the insurance industry and the stock markets are not strong in China, and then it gives some advices: It is correct to increase the proportion of insurance funds direct investment in the stock markets, but should not be too fast.The article classifies stock market investment strategy systematically and practically, and analyses character of insurance funds in theory, then, chooses the right strategy for insurance funds direct investment in stock market. Life insurance funds should take general investment strategy, conservative and radical investment strategy is suitable for non-life insurance funds.The article makes some innovation on the current study: it is practical and can also make some sense to the theory. It proposes theory after analyzing the effect of insurance funds direct investment in stock market systematically, and uses empirical analysis results of developed countries to approve the theory, all of that promote the current study. The research on strategy of insurance funds direct investment in stock market fulfills the blank on this field.