Ministry Of Finance: Institutional Investors Are Not Mature Enough &Nbsp; Local Social Security Funds Are Not Allowed To Enter The Market.

The Ministry of finance requires that the balance of social security funds can only be converted into time deposits or treasury bonds.

Social security fund is the "pension money" and "life saving money" of the people, and the safety of funds is the first.

According to the notice, the surplus funds of local social insurance funds can only be converted into time deposits or national bonds, and no other forms of direct or indirect investment can be carried out. The impulse to invest in some places needs to be "cooled down".

Under the current circumstances, pensions are not mature enough to enter the stock market, and there are unsafe factors such as market risks and operational risks.

In the long run, the investment channels of social security funds will be widened gradually.

The Ministry of Finance recently issued a circular calling on all localities to further strengthen and standardize the management of social security funds, and ensure the safety, standardization and effectiveness of all social security funds incorporated into social security households.

Clearing up multi accounts and re opening accounts will further simplify the number of social security accounts in the future.

The circular points out that in recent years, with the efforts of the local financial departments at various levels, the management of social security accounts has been constantly improved and standardized, and a set of rules and regulations for accounting, financial management and working procedures has been worked out to ensure the safe operation of all social security funds and the implementation of the national social security policies.

Since 2011, the Ministry of finance has organized and cleaned up local financial accounts nationwide.

In the verification work, the management of the social security special household also exposes some problems and needs to be further standardized and solved.

In the verification and rectification work of local financial accounts, it is found that there are some problems of social security funds opening accounts and re opening accounts in some places.

The local social security departments at all levels should actively cooperate with the Treasury and treasury departments to do well in the accounts management work such as cleaning up, merging and opening social security accounts.

The circular requires that provincial and municipal social security households should be set up in more than 5. Before the end of 2012, they should be streamlined and merged to 5. The county social security accounts should be set up in 3 or more. By the end of 2012, they should be streamlined and merged to 3.

Only one commercial bank is allowed to open a social security account.

In the future, with the promotion of social insurance provincial coordination work, we should further streamline the number of social security households.

At present, the number of social security households will not be increased if the number of social security households is set.

Separating money from management and preventing corruption from the source

Regulating the management of social security accounts is an institutional and institutional measure to safeguard the safety of financial funds and prevent and control corruption at the source.

After the centralized management of the social security households, the local social security departments at all levels and the Treasury and treasury departments should strengthen communication and coordination in a conscientious and responsible manner, and do well in the link up after the pfer.

In accordance with the principle of separating money from management, the Treasury Treasury Department is mainly responsible for account management (including account opening, alteration, cancellation, etc.), capital management and accounting management, and provides monthly social insurance funds for the social security funds at the level of social security funds and the number of accumulated accounts and the accounts receipts and payments of the social security funds on a monthly basis.

The local social security departments at all levels, the Treasury and treasury departments should strictly implement the financial accounting system of social insurance funds, and further refine the division of responsibilities, establish standardized work procedures, and ensure smooth pfer of social security accounts, and safe and efficient operation.

Fund balances can only be converted into time deposits or national bonds, and no other forms of investment can be made.

Social insurance fund is a special interest bearing fund which is imposed by the state through legislation. Its value preservation and increment is related to the normal operation of the social insurance system.

The notice requires that the financial department should put forward the policy of dividing the risk and paying interest according to the policy to the opening bank. The bank will provide a multi interest declaration form by the Bank of the social security account, and send the Treasury Treasury Department, the financial social security department and the social insurance agency separately.

The local social security departments at all levels should, based on the balance of social insurance funds, put forward proposals for depositors' time deposits or purchase of State bonds' fund balances and deadlines on the basis of consultations with relevant departments, and the Treasury Treasury departments should formulate specific operation plans for depositors' time deposits and State bonds in accordance with state regulations, and implement them in accordance with the prescribed procedures.

The local financial departments shall not use funds balance for any other direct or indirect investment.

The local financial departments should establish and improve the system of maintaining and increasing the value of the fund and operating mechanism, so as to ensure the value of the fund to be maintained and increased while ensuring the safety of the fund.

Capital security is the first, and the market conditions are not mature.

According to the spirit of the notice, the current balance of social insurance funds can only be pferred to deposits or bonds.

Does this mean "blocking" other investment channels of the social security fund?

"Social security fund is the" pension money "and" life saving money "of the people, and the safety of funds is absolutely the first.

Liu Shangxi, deputy director of the Finance Department of the Ministry of finance, said that the most fundamental requirement of the social security fund is safety, to ensure that payments can be paid on time, followed by investment returns and appreciation.

For the recent hot social pension market entry, Liu Shangxi believes that under the current circumstances, the pensions are not mature enough to enter the stock market, and there are unsafe factors such as market risks and operational risks.

On the one hand, China's stock market is growing as an emerging market, with volatility and risk higher than that of developed countries. On the other hand, China's stock market investors, including institutional investors, are not mature enough and steady, and there are great risks in investment operation.

These two risks stack up and are not suitable for social security funds with high security requirements.

"Although time deposits and treasury bonds are not very profitable, at least they will not lose money. If the pension market is going to cost the capital, how can such a big hole be blocked? Who can afford this responsibility?" Liu Shangxi believes that the notice is mainly to give some local investment impulses to "cool down" and prevent the situation of "investment" in the name of value preservation and increase in value, causing capital risks.

For the recent National Social Security Fund Council entrusted by the Guangdong provincial government to invest in the operation of Guangdong province's basic old-age insurance fund for urban workers, Liu Shangxi said that this is a new practice and new thing. First, it will be piloted in Guangdong.

In the long run, the investment channels of social security funds will be widened gradually, but they cannot be "aggressive".