On China's Insurance Funds To Invest Stock Market Risk And Prevention

Since many years. Chinese insurance industry has been making profit by high tariff rates impose under planned economic system, which prevents insurance investment from being valued and developing. Along with the insurance market of our country opening completely, market competition will aggravate constantly and the profit rate of insurance serve is getting more and more little. Furthermore, the phenomenon of loss willbearised. In 2004 China Insurance Regulatory Commission (CIRC) obtained the approval for insurance funds entering the stock market directly, a step essential to the healthy development of the capital market. The insurance capital is expected to face big opportunities and challenges at the same time after going on stock market. A effective control of the insurance risk is the key to the insurance capital entering the stock market directly and its safety on the market. This dissertation proves the importance of insurance investment for the development of Chinese insurance industry by drawing the experiences from the developed countries, and studies some existing problems in Chinese insurance investment on stock market: small investment scale, low investment return, unreasonable structure and poor management. Considering the features of insurance fund sufficiently, this paper elaborated systematic and nonsystematic risks in detail which is faced with in the process of stock investment, and then measures the systematic risk of stock market by the method of quantitative analysis. This dissertation focuses on factors leading to the above problems from three aspect: stock market, supervision and insurance companies management raise the proposal for overcoming the above factors. This dissertation also introduces and compares the insurance investment supervision of China and other major countries, then makes proposals on how to improve the insurance investment supervision in Chinese stock market.