The Study On Risk And Prevention Of Chinese Pension Funds Entering The Capital Market

Pension serves as an important treatment for employees after retirement,promoting the social equity and development.Also,as an institutional investor,pension funds can guide the market to make long-term value investment,as well as accomplish the positive interaction with capital market,and therefore pension has a significant contribution to economic development.However,with the acceleration of population aging in our country,the implicit debt caused by the transition of the pension system is becoming more and more obvious,resulting in the situation of empty individual accounts.Besides,the conservative pension funds operation mode has low rate of return,and our pension funds has actually faced with the dilemma of making ends meet.Therefore,it was high time that pension funds invest into the capital market in order to achieve the goal of maintaining and increasing the value of asset.Although the policy has broadened the pension funds investment channels,pension is old people's "life money",and therefore pension funds investment management needs to ensure safety and prevents against all kinds of risks.Based on this,the paper analyzes the current situation of China's pension market,and points out the existing problems of investment operations,such as financial aid for pension gap,empty individual accounts and low return of investment.At the same time,the paper explores the future principal-agent relationship risk and market risk of Chinese pension entering the capital market.After defining the risks,the paper studies the risk control strategy of China's pension market operation from the qualitative and quantitative aspects.From the qualitative level,as China's pension has been advocating the construction of "Chinese 401K plan",and 401K plan is the most typical representative of American pension market,so the paper firstly analyzes American 401K and IRA pension plans,and then summarizes the experience of pension operation and supervision mode which can be used for reference in our country.From the quantitative level,due to the lack of investment experience data of our country's pension,but China's social security fund has been into the market for many years and made much successful investment management experience,together with the relevant policy document which clearly stipulates that Social Security Fund Council can be entrusted for pension management,therefore the pension and social security fund have similar investment risk preference.In view of this,the paper uses VaR model to evaluate the risk of social security fund,and then provides applicable investment and risk control suggestions for future pension market operation from the quantitative levelFinally,the paper draws lessons from both domestic and foreign experience,sums up the basic conclusion,and summarizes the policy recommendations applicable to Chinese pension management situation,so as to achieve the goal of maintaining and increasing the value of pension with scientific theoretical support.