Chinese social insurance problem has a great change

As we know, China has a quarter of the population in the world but they are behindhand in social insurance. In 2000-2007 Chinese people especially Chinese Rural people even didn’t know the social insurance. In this aspect, Chinese bad performance influences the world Social security popularization.

In 2009, Chinese government made a decision that is improve the whole countries living standard especially the rural peoples. “When we are young, we depend on our own hand, work on the farm. When we are old, we have to rely on our children. If we have no children, the only way is the god. We never thought about government will care about our daily living in our old time.” said an old woman. “we are so happy to hear about the change, we believe our government and we looking forward to a better life in the near future”.

The National Council for Social Security Fund is inviting domestic investment funds and securities firms to apply to manage its growing assets for the first time in six years. China’s National Council for Social Security Fund (NCSSF) has placed a notice on its website inviting domestic investment funds and securities firms to apply to manage its growing assets. If successful, it will be the first time since 2004 that the fund has added domestic managers to its 10-strong list. Regarded as China’s most sophisticated asset owner, the NCSSF’s new recruitment plans are likely to trigger a fierce round of competition in the industry. Fund management firms will be eager to be selected, given the relatively low maintenance

2010 Chinese government is trying to popularize the rural social insurance. Chong Qing and Zhe Jiang become the first two cities which popularizes the social security.

China has required all state-owned enterprises (SOEs) listed on the A-share market to transfer a portion of their shares to the national social security fund (SSF). As of 2009, a 10 percent stake of the initial public offerings of all SOE holdings must be transferred to the SSF. Currently, all newly listed SOEs, along with 75 percent of established stocks, have already completed this transfer to the SSF. This new source of revenue means that the national social security fund will increase its earnings by 30 billion yuan every year. However, because all state-owned enterprises have been permitted to offer shares on the stock market since 2004, there are less and less state-owned shares to be transferred to the SSF. "There are not so many state-owned shares now. We can only rely on gaining dividends," an anonymous official with the National Council of SSF said. But as many SOEs rely on the monopolization of industrial resources in order to gain their profits, some experts argue that all of these companies should also transfer part of their revenue to the SSF.

Also, 11 November 2010, China Adopts Social Insurance Law. That will benefit their people a lot. “Chinese government’s action on social security, the biggest beneficiary is Chinese people. Actually, the Chinese people lives standard has been improved, that is good to our merchandise and nation economy.” MR Kevin said. MR Kevin is the chairman of a top distributor -----DinoDirect Company. He hopes this action will improve their market share in China.