December 13, 2001, the Ministry of Finance, the Ministry of Labor and Social Security promulgated the “National Social Security Fund Investment Management Interim Measures,” clearly the basic principles of social security funds, investment scope, investment ratio, investment, and establishing a social security fund supervision , reporting and financial systems. June 2, 2003, the National Social Security Fund Council and the South, Bo, China, Peng Hua, Changsheng, Harvest Fund Management has signed six commissioned by the relevant license agreements, the National Social Security Fund’s formal entry into the securities market. Social Security Fund and the stock market has become attached to a decade, but the social security fund on the market but the market is always a hot topic. Last December, the China Securities Regulatory Commission Chairman Guo encourage pension funds, corporate pension, housing fund and the surplus funds for long-term capital in 2012 took the opportunity to enter the market. January 14, Dai Xianglong, chairman of the National Social Security Fund Council annual meeting in China’s economy once again, the establishment of specialized institutions operating pension investment focus, according to a certain percentage of stock investments is imperative, he said the pension market not a government “prop up the market bailout.” Social Security Fund in the market triggered a big discussion. At present, the size of social security funds into the stock market has reached several hundred billion dollars, but the social security funds into the stock market should not, or do the stock market “savior” is still inconclusive. The reporter interviewed a number of industry experts to express their views, opinions differ. Market battle Wing Sum: For social security funds into the stock market, who agree with my point of view. China’s social security fund in accordance with chapter management practices, the social security fund to increase the value of the request. Out of security considerations Social Security Fund, China Social Security Fund has been invested in government bonds, deposits and other low-risk areas, but also brought low-risk low-income. From the long-term development perspective, the choice of some low-risk, higher-yielding equity investment is the social security fund asset allocation directions. In fact, the social security fund’s investment in the stock market has a certain size, but the operation is successful, the gains are good, in the past 10 years, the National Social Security Fund Council annual investment return rate of 9.17%. But the social security funds into the stock market need to configure the appropriate ratio. Because of the social security fund, preservation is an important aspect, we must take into account the security of assets, in order to consider increasing the value of the premise, to do risk control. The risk from the stock market point of view, the social security funds into the stock market risk than bonds and other investments may be large, but it’s expected return will be higher, it is necessary to grasp the proportion of social security funds into the market asset configuration. Pension fund investment is long-term investment, efficiency may be one or two years or even longer to see, so we do not market to determine when to do the short term. I personally have confidence in the stock market, at present, the overall smooth running of China’s economy, the stock market rebound is expected to greatly enhance the social security fund or other funds in the protection of security, do the asset allocation ratio of the premise, you can invest in China’s stock market. Zhang Lu Yang: Now on the social security funds into the stock market point of view, first of all the properties from the Social Security Fund has been a mistake. National Social Security Fund is out of money, businesses paid the money, the public out of their own money, social security fund is to protect the assets, rights and interests of mass society is the ultimate protection. It is the first requirement is security, followed by liquidity and profitability. If there is no social security protection of public safety requirements, but an equity fund, not to mention the investment markets, investment and what the cities have no problem with Social Security Fund does not have the business assets of the property, so there is no value-added problem, it only requires that the security be guaranteed under the premise of preservation, allowing more people to get social security payments. So let social security funds into the stock market against the social security fund was originally conceived. International social security fund management experience from the point of view, many foreign social security funds, pension funds, education funds only allowed to enter the bond market, not allowed to enter the stock market. The stock market too risky, expected good earnings situation better, if the responsibility is lost or the public decision-makers responsible for their own responsibility? Wang Hao: China’s stock market has a “speculative” and “policy market” characteristics, the current system has not yet improved a lot. Social Security Fund in the market not only to increasing the value of the problem, but the system is to promote a fundamental change in the stock market an important measure. Social Security fund large-scale market, the state must change the current stock market re-positioning system of financing the return of light to ensure healthy and stable stock market play. Therefore, the social security fund on the market for A shares is definitely a long-term major positive. Ye Tan: A-share market has now become a means for misappropriating field, complete circle of listed companies after the Han and regardless of the money, not only did not protect the interests of individual investors, many institutions did not protect the rights. Because the unlimited expansion, no delisting mechanism does not protect investors, wantonly misappropriating, insider trading and so on to the stock market into a bottomless pit, no amount of money into all filled up. To social security funds into the market, is tantamount to wait for tiger body. Debate rescue Wing Sum: In the current stock market, the social security fund on the market is clearly good news is twofold: on the one hand, increasing the value of social security funds is good, and now the stock market has been at historic lows, lower than the previous high risk a lot of security into the stock market has increased, as the long-term investment, the expected rate of return is also very impressive; the other hand, the current market needs such as social security funds into the money, boost market confidence. In fact, each time a social security funds into the stock market will boost the role of the stock market, which is a long-term health of the stock market support. From two point of view, it is clear to enter the social security fund the development of the stock market is good, but its primary purpose is to increase the value, not a bailout, the relationship between the two can not be inverted. Zhang Lu Yang: Social Security Fund is a public capital should be subordinated to the overall situation. But not to get Social Security Fund bailout a wise move. Social Security is to protect the public social security fund, not to protect the safe operation of the stock market. Of social security funds into the stock market has so far not very good risk control and risk compensation mechanism. Social Security Fund does not have the obligation to save the city. From their own asset allocation is concerned, it is not to save others, the National Social Security Fund can not take risks to save the city, which is unrealistic, does not conform to the requirements of the social security fund management. Wang Hao: Social Security funds into the market will effectively increase the supply of capital markets, strengthening the power of institutional investors, institutional investors can effectively change the current between each game, between institutional investors and retail investors for profit situation. Social Security Fund, as the people’s life insurance money, the pursuit of financial security, liquidity and profitability, control risk is the premise of social security funds into the market, and therefore low risk, good return of its investment shares will be the main varieties, so it will promote the formation of new market investment philosophy. Meanwhile, the social security fund on the market for the fund management company’s operations and risk control put forward higher requirements. Fund management company’s operations, will become more standardized and transparent, and will consciously reduce speculation, short-term speculation and replace them with rational, long-term investment. Therefore, the objective of social security funds into the market will stabilize the market. Ye Tan: Social Security funds into the market only after the results of the healthy development of the market, rather than creating the premise of the bull market must not cause and effect reversed. Because the stock market downturn and to promote the Chinese version of “401K” plans, contrary to free and fair market competition, will only make re-financing A shares do not change the characteristics of light return. If a substantial loss of social security funds, will be the community can not shirk. Therefore, the social security fund in the market, the market should be a fundamental system reform, in order to allow more people to share China’s economic development dividends.
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