Research On Interaction Effect Between Pension Fund And Financial Market In Rural Area

According to the U.N standard of population age division, China had already been in the group of "aged". Basing on population distribution,70% aged live in the relatively backward countryside intensively. Under the push of the reformation of economic system, various changes about the whole society as well as economic structure are in great need. The traditional rural elder security system, which is based on family supporting and land, faces the crisis of undersupply. So it is urgent for china to establish the social pension system in rural place.China's rural social pension system dated from the middle 1980s, which has experienced through the exploration, promotion, stagnation, and resuming development process. Since the end of 2009, the new rural social pension system is launched widely. Although the design of new system is better than the old, the issue of increasing the value of the fund is still not properly addressed. Therefore, this dissertation highlights rural social pension fund as the main object, combined with the development of rural financial markets, to discuss the great increasing of the value of fund. Increasing the value of the Fund is bound to be associated with the financial markets. Since 1979, after 30 years of reform and development of China's rural financial market is still a serious outflow of capital issues. This paper selects Hutubi County, Xinjiang, pension card as security for loans model as a typical case to research rural social endowment insurance fund and the interaction between the rural financial market development. Analyzing the operation mechanism of this model, we explore the rural social endowment insurance fund and the Rural Financial Market in the path of development, to achieve China's rural social pension insurance funds and mutual development of rural financial market situation.This dissertation is made up of three parts. The logical thinking focus on the interaction's necessity, possibility and obstacle to realize, tightly constructed framework derived from our study to construct the framework of theoretical research.The first part of necessity analyzing introduces the interaction effect between pension fund and financial market at first, and then explained that pension fund system could have positive interaction with financial market. Linking the theory frame, I expounded reform course and existent problems of rural pension system and rural financial market, to explain that why we should to establish the social pension system interacted with economical market.The second part --- possibility anglicizing, introduces and proves pledge loan model could promote rural financial market with a successful model of Xinjiang Hutubi rural security in terms of empirical results, to prove that positive interaction can be achieved via this model.The third part---main problems and countermeasures, which not only mentions possible problems, but also figures out that, in order to promote positive interaction between the pension funds and financial market, it is core to diversify the functions of the pension insurance card loans, to implement the pledged loan model as well as the two-way feeding system and to speed up legislative work related measures.