Research On The Investment Of Pension Fund In China

Pension system is not only an important social system, but also an important economic system. Since the 1980s, because of the external factors such as the growing of aging population and the slowing pace of economic growing and the internal factors such as choice and institutional design of pension system, the traditional pension system named pay-as-you-go faced crisis. Countries had to reform their pension systems, so funded pension system was born. The pension fund was invested into capital market. The pension fund investment practices in the world accumulated much successful experience and failing lessons.Because of the growing of aging population, the pension income in the pay-as-you-go system could note satisfy the pension expenditure, China has begun to reform its pension system since 1990s. In the new pension system, only part of the pension fund is invested to achieve certain return yield that the pension system would be sustainable. Then it brings some new problems, such as: how to choose the Investment combination and how to reduce the relative risks, and so on. This paper give some suggests for solve these problems.The first chapter shows the background of this paper, Literature review, and ideas & methods of research. The second chapter talks about the development of pension system in our country, the composition and provisions of our pension. The third chapter introduce about the investment of our pension. The fourth compares the investment of pension in foreign countries. Some solutions are recommended in the fifth chapter. The conclusion is expounded in the last chapter.