How does China Social Security Fund work?

The National Social Security Fund (hereinafter referred to as the Social Security Fund) refers to the social security fund centrally managed by the central finance, managed by the National Social Security Fund Council (hereinafter referred to as the Council), and consists of funds and equity assets allocated by the reduction of state-owned shares, funds allocated by the central finance, funds raised by other means approved by the State Council and their investment income. Social security funds are not open to individual investors. Social security fund is a part of the endowment insurance premium paid by the state to enterprises and institutions managed by professional institutions in order to maintain and increase the value.

The basic principle of social security fund investment operation is to realize the appreciation of fund assets on the premise of ensuring the security and liquidity of fund assets. The state stipulates that social security funds can enter the stock market, of course, not all, and there are proportional restrictions. The main purpose is to maintain and increase the value of social security funds and protect the interests of the people. The assets of the social security fund are independent of the board of directors, the social security fund investment manager and the social security fund custodian. The Ministry of Finance and the Ministry of Labor and Social Security shall formulate relevant policies on the management and operation of social security funds and supervise the investment, operation and custody of social security funds. China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) and the People's Bank of China shall, according to their respective functions and powers, supervise the business activities of investment managers and custodians of social security funds. "Social Security Fund" is a simplified generic term, and * * * has five concepts.

The first is the "social insurance fund";

The second is the "social pooling fund";

Third, the personal account fund in the basic old-age insurance system is called "personal account fund";

Fourth, the enterprise supplementary security fund includes the enterprise supplementary endowment insurance fund (also called "enterprise annuity") and the enterprise supplementary medical insurance;

Fifth, the national social security fund. The current chairman of the Social Security Fund Council is Dai Xianglong, former governor of the central bank and former mayor of Tianjin. Chairman Dai is also the party secretary of the Council.