The National Social Security Fund (hereinafter referred to as the Social Security Fund) refers to the funds and equity assets allocated by the National Social Security Fund Council (hereinafter referred to as the Council) from the reduction of state-owned shares, funds allocated by the central government, and other methods approved by the State Council.

The funds raised and their investment income form a social security fund centralized by the central government.

The social security fund is not open to individual investors. The state transfers part of the pension insurance premiums paid by employees of enterprises and institutions to professional institutions for management to maintain and increase value.

The basic principle of the investment operation of social security funds is to realize the appreciation of fund assets while ensuring the safety and liquidity of fund assets.

The state stipulates that social security funds can enter the stock market, but of course not all of them, there are proportional restrictions.

The main purpose is to increase the value of social security funds and ensure the interests of the people. Social security fund assets are assets independent of the board of directors, social security fund investment managers, and social security fund custodians.

The Ministry of Finance, together with the Ministry of Labor and Social Security, formulates relevant policies for the management and operation of social security funds, and supervises the investment operations and custody of social security funds.

The China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) and the People's Bank of China supervise the business activities of social security fund investment managers and custodians in accordance with their respective powers.

"Social security fund" is a simplified collective term. There are five concepts.

·The first is the "social insurance fund"; ·The second is the "social pooling fund"; ·The third is the fund on the personal account in the basic pension insurance system, which is called the "personal account fund"; ·The fourth is including the enterprise supplementary pension insurance fund

Enterprise supplementary security funds (also known as "enterprise annuities") and enterprise supplementary medical insurance; ·The fifth is the "National Social Security Fund".