Social security fund entering the market

Since the promulgation of 200 1, 12, 13, the entry of social security funds into the market has become a hot topic. At present, fund management companies are submitting application materials for participating in social security fund investment managers in accordance with the relevant requirements of the National Social Security Fund Council. The board of directors will finalize the list of investment managers according to the selection of the expert review Committee. It can be said that the social security fund will enter the market in the near future. What is the significance of social security fund entering the market?

First of all, the social security fund's entry into the market has increased its investment channels, which is conducive to its purpose of increasing value on the basis of maintaining value. In the past, the gap of social security fund was constantly expanding. On the other hand, a large number of social security funds are idle, which ensures the safety of funds, but fails to make full use of them to maintain and increase value. Allowing social security funds to enter the capital market by choosing suitable fund management companies expands the investment channels of social security funds and is more conducive to maintaining and increasing their value.

Secondly, the entry of social security funds into the market has increased the supply of market funds and strengthened the strength of institutional investors. According to estimates, China currently has more than 200 billion yuan of social security funds for investment. Once these funds can enter the capital market through legal channels, it will greatly increase the supply of funds in the market and balance the supply and demand of funds in the market. At the same time, as the most important institutional investor, the participation of social security fund will undoubtedly enhance the strength of institutional investors and change the current situation in which institutional investors compete with each other and institutional investors compete with retail investors for profits.

Thirdly, the entry of social security funds into the market will promote and accelerate the formation of new investment ideas in the market. As the life-saving money of ordinary people, the social security fund pursues the security, liquidity and profitability of funds, and risk control is the premise for the social security fund to enter the market. Therefore, blue-chip stocks with excellent performance will become the main varieties of its investment, and diversification, band operation and even long-term shareholding will probably become its main modes of operation. As the most important force among institutional investors, social security fund's investment concept will objectively guide investment and promote and accelerate the formation of new investment concept.

Finally, the entry of social security funds into the market will objectively stabilize the market. The entry of social security funds into the market puts forward higher requirements for the operation ability and risk control ability of fund management companies. Fund management companies need to do a lot of preparatory work in the process of submitting application materials for social security fund managers and accepting the selection of expert committees, and their operation will be more standardized and transparent. As the most important institutional investor and the backbone of the market, funds consciously reduce speculation and short-term speculation and replace them with rational long-term investment, which will objectively stabilize the market.