Comparative Analysis On The Investment Operation Of Pension Fund In China And America

With the arrival of peak of China’s aging population, scholars have paid great attention to the hedge and appreciation of pension insurance fund, for its investment is closely related to the public’ interests and to implementation of new policies of pension insurance and social stability. So, in order to learn experience and avoid mistakes, pension insurance of China should be compared to that of other countries which is better and mature when it comes to pension insurance operationBy comparing pension insurance system between China and the America, the paper tries to solve problems related to pension insurance investment. Firstly, the paper compares overall frameworks of pension insurance system between the two countries. As the No. 1 capitalized country, the America has a long history of pension insurance development with wide coverage and special 3 Legged Stool Framework.However, in China, the pension insurance system has only developed for decades. As a result, the basic pension insurance fund plays a leading role while corporate supplementary endowment insurance and personal saving pension insurance develop so slowly that only meet basic needs of the insured, let alone improve their lifestyle after retirement.Secondly, the paper compares investment environment, operating body,investment channels, and operating mode of pension insurance fund by detail between the two countries. Since the America is equipped with mature capital market and superior pension insurance fund investment environment, China should promote mechanisms in the stock market to ensure pension insurance fund safety. Besides,based on Social Security Act, the America has developed strict operating mode not only to ensure fund security but also to provide legal basis for operating body ofpension insurance fund. Compared to the America, China is so insufficient in such fields that related social security acts should be introduced immediately. What’s more, to ensure appreciation of pension insurance fund, the American federal government has set various investment channels and limited high-rick investment projects. Compared to this, China only has single investment channel, which means that China should expand its investment channels to realize hedge and appreciation of the pension insurance fund. Also, by CAPM model analysis of pension insurance fund investment, the paper finds that reasonable investment of pension insurance fund in the stock market can not only realize its appreciation, but also stabilize the stock market. The paper also finds although model results of both countries are optimistic;those of China can only be gained in an ideal state, which means people should be cautious when it comes to real investment.In order to optimize the pension insurance fund investment in China, four measures should be taken according to previous analysis. Firstly, related operating principles should be made clear. Secondly, scientific management should be confirmed. Thirdly, investment portfolio should be optimized. Fourthly, related motivation mechanism should be established.