At present,10.5 trillion local pension investment is deposited in local banks, and the average annual rate of return for ten years is less than 2%. On the other hand, China's social security fund gains income by investing in the stock market, and still achieves an average annual income of 9. 17% under the market environment of zero growth in the stock market for ten years. At present, the China stock market is at a low ebb. Pensions that are committed to long-term investment are likely to get stable income after learning from social security funds, thus getting rid of the current situation that pension income can't run away from inflation. At the same time, the pension represents the interests of the people of the whole country, and it will be very attractive to enter the market. The entry of pension into the market will promote and accelerate the process of supervision and reform of the stock market, promote the maturity and development of the stock market, and be beneficial to the development of the stock market in China. Because the pension is devoted to long-term investment and value investment, the investment targets are mainly blue-chip stocks and other stocks with performance support, which can promote the revaluation of blue-chip stocks to some extent, improve the current situation that the stock market is dominated by speculation, make the China stock market return to rationality and improve the functions of the stock market.

Disadvantages of pension entering the market

First of all, the China stock market is now in an opportunity period of development and transformation, and various rules and regulations are not mature enough, and the protection for investors is not perfect enough. However, the China stock market is short of bulls and bears, with violent shocks, low positioning of blue-chip stocks and heavy speculative atmosphere. In this case, the pension market faces greater market risks.

Second, pension, as a long-term fund, should be bound by strict operating rules when entering the market, formulate a standardized risk control system, and design medium-and long-term investment objectives and profit models. At present, Chinese mainland's capital market not only lacks the conditions for long-term capital operation, but also the relevant professional management institutions are mostly unprepared. Third, pension funds are not abundant. China implements the old-age insurance model of unified account, and the unit pays 20% of the total wages of employees and enters the overall fund to pay the current pension; 8% of the salary paid by an individual enters a personal account, which is equivalent to personal pension savings, and is used to preserve and increase the value. However, for a long time, due to the shortage of overall funds, part of personal account savings has been used to make up for the gap. Pensions need further preparation to enter the market. At present, the conditions for pension to enter the market are not mature enough. Therefore, at present, regulators should devote themselves to improving the market system and pave the way for future pension funds to enter the market. This paper puts forward the following suggestions: First, further strengthen market construction and improve the corresponding system. Including further promoting IPO reform, strengthening delisting system, encouraging listed companies to pay dividends, cracking down on insider trading and other illegal acts, so that China's capital market will gradually embark on a healthy and standardized development path and reduce the risk of pensions entering the market. Second, regulators should encourage value investment, encourage long-term investment, further curb speculation and create a healthy and good investment environment for pensions to enter the market.

Third, encourage pension funds to invest in overseas capital markets before investing in domestic stock markets. When starting the pension market, it is suggested that pensions can be allowed to invest in mature overseas markets, such as the Hong Kong stock market. Compared with the mainland stock market, these capital markets are more mature, the dividend system is relatively perfect, and the market supervision level and concept are advanced. Moreover, the prices of many blue-chip stocks are lower than those in the mainland capital market, which meets the safety and investment standards required by mainland pensions.

Fourthly, through the improvement of pension management system and the formulation and improvement of pension-related legal system, the efficiency of pension operation can be improved; Make up for the problem of empty accounts of pensions and lay a good foundation for pensions to enter the market.