Since the promulgation of the "Interim Measures for the Investment Management of National Social Security Funds" on December 13, 2001, the entry of social security funds into the market has become one of the hottest topics.

Currently, each fund management company is submitting application materials for election as an investment manager of the social security fund in accordance with the relevant requirements of the National Council for Social Security Fund. The council will finalize the list of investment managers based on the selection of the expert review committee. It can be said that

The entry of social security funds into the market is not far away.

What is the significance of social security funds entering the market?

First of all, the entry of social security funds into the market has increased its investment and utilization channels, which is conducive to its purpose of adding value on the basis of maintaining value.

In the past, the gap in social security funds continued to expand. On the other hand, a large amount of social security funds were idle. Although the safety of the funds was ensured, they were not fully utilized to increase their value.

Allowing social security funds to enter the capital market by selecting appropriate fund management companies expands the investment channels for 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 power of institutional investors.

According to estimates, there are currently more than 200 billion yuan of social security funds available for investment in China. Once this part of the 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 market funds. At the same time, as the most important institution

The addition of investors and social security funds will undoubtedly strengthen the power of institutional investors and change the current situation in which institutional investors compete with each other and institutional investors and retail investors compete for profits.

Thirdly, the entry of social security funds into the market will promote and accelerate the formation of new investment concepts in the market.

As the people's life-saving money, social security funds pursue the safety, liquidity and profitability of funds. Risk control is the prerequisite for social security funds to enter the market. Therefore, blue-chip stocks with excellent performance will become their main investment varieties, while diversified investments and band operations

Even long-term shareholding may become its main operating method.

As the most important force among institutional investors, the investment philosophy of social security funds will objectively play a guiding role in investment, promoting and accelerating the formation of new investment concepts.

Finally, the entry of social security funds into the market will objectively stabilize the market.

The entry of social security funds into the market has put forward higher requirements on the operational capabilities and risk control capabilities of fund management companies. Fund management companies need to make a lot of preliminary preparations in the process of submitting application materials for election as social security fund managers and accepting selections by expert committees.

work, the operations of fund management companies will thus be more standardized and transparent.

As the most important institutional investors and the backbone of the market, funds consciously reduce speculation and short-term hype methods and replace them with rational and long-term investment methods, which will objectively stabilize the market.