Empirical Research Of Social Security Funds’ Stock Selection Preference In The China Stock Market

This article aims to investigate the characteristics of the social security fund positions in stock with a number of statistical methods. The datas come from Wind financial database.The sample interval covers7reporting periods from2008-2011, the sample covers all the A shares listed before2008,and then filters according to certain principles, the selection of indicators covering a company’s fundamentals, performance,profitability,corporate governance,stock market performance; The approaches includes descriptive statistics, independent samples T-test and multivariate statistical analysis; The last step is to find the the significant parameters that affect the Social Security Fund’s preferences,and then Compared with the investment philosophy and operational objectives of the social security fund.The conclusion can be used as references for majority of investors, and the security market can develope steadily.The final study results show that the social security fund’s preference for those with good profitability and the companies which Occupy a leading position in the industry; aversion of the companies that the largest shareholder is too strong or the ownership structure is too dispersed; of course, as institutional investors, social security funds demonstrated its Pursuit of profitability,meanwhile,they prefer the stocks that have lower turnover ratio. In short, the stock characteristics of the social security fund invested in fit its operational objectives and investment philosophy.