Chisiao: Insurance funds intervene in endowment industry investment

Insurance funds intervening in endowment industry investment--a steady, sustainable and more winning investment idea Author: Chisiao marketization and urbanization process are important signs of a country's economic development level. In the more than 30 years of reform and opening-up, China has gradually realized the transition from planned economy to planned commodity economy to the current one. This kind of transformation, has provided the fundamental safeguard from the system to seize the international market opportunity and the leaping development domestic economic construction. However, any country's economy must face the passive and spontaneous adjustment of industrial structure.　　As an investment subject, both legal person and natural person must follow the law of survival and competition of Commercial society, take the situation in the continuous change of industrial structure, have a deep grasp of the system foundation environment, and carry out positive and steady investment arrangement. The more than 30-year reform and opening-up process has achieved rapid growth in some emerging industries such as it, communications, securities and insurance. In the field of investment, the exploration and attempt, imitation and innovation, failure and success, development and transformation are continuously deduced. The utilitarian nature of the market and the profit-benefit of the capital are the laws of blood. The rapid development of enterprises must be based on the correct positioning of industry and timely adjustment. The investment of capital must be adjusted accordingly with the change of industrial structure. The "invisible hand" of the law of value has an absolute advantage and a great destructive effect on the spontaneous regulation of the market. In other words, the industrial development on the basis of market mechanism is based on the destructive premise. Backward industries and the elimination of production capacity is the inevitable result of the development of new industries and technologies.　　Chasing and pioneering the sunrise industry is an important strategy and effective means for enterprises to lead the development and occupy the market heights. The relative saturation and meager profit of primary and second industry, even facing the huge cost of overcapacity and the new upgrade of technology and management, make it unable to have great attraction to the new investment, the rise and rapid development of the tertiary industries is an indisputable fact. The high growth of financial services such as banking, securities and insurance, the rapid development of consultancy, training and education services, the emergence of cultural and entertainment industries such as film and television, and the enormous potential of medical and health services are all obvious. In this global financial crisis, in addition to investment banks, brokerage and other financial services enterprises and enterprises holding a large number of financial assets, other tertiary enterprises have not suffered a negative impact, and the cultural and entertainment industry, such as the new tertiary industry in China instead resorted,　　2009 China's leisure and entertainment industry annual growth rate of 60%. Business success is first in the future, and market forces are fast enough not to allow too much hesitation and wait and see. Such lessons abound. "The State Council on the promotion of Hainan International Tourism Island construction and development of a number of views on the decision" after a very short period of time, the real estate prices in Hainan have quadrupled, so that the 90 's Hainan real estate development myth can be repeated. The announcement of the state's decision to revitalize the cultural and entertainment industry has also rapidly integrated a large number of strategic investors to test the water, and film manufacturers have been able to start the gem immediately. Entrepreneur to the marketForesight is as important as the technical creativity of the researcher and the academic sensibility of the scholar. The innovative thinking, supplemented by the accurate grasp of the institutional environment and reasonable anticipation of the market opportunity, is the necessary prerequisite for the establishment and development of the new industry. It is true that the stone of the mountain can be used to attack jade, and it can also achieve industry innovation across economies. Taikang Life Chen Dongxhe Chairman of the first proposed pension community investment concept, based on the successful entrepreneur of the country's accurate grasp of the situation, a deep understanding of the market, the development of the industry's leading awareness of the humanities and social spirit of the positive interpretation.　　Of course, it is deeply rooted in the field of long-term care for the elderly and the domestic and foreign pension industry adequate research. China's endowment industry contains huge and sustainable business opportunities. The current endowment mode of our country is based on the family endowment, the Social endowment as the Foundation, the institution endowment as the Supplement. However, it has become a serious problem for Chinese society to face up to the old age before it is rich. At the same time, the rapid development of the aging population is facing more severe challenges to the existing pension mode. At present, the mainstream family structure of "421" in our country is subverting the way of family endowment. In the 1999, China entered the internationally recognized aging society, the 60-year-old population 10% of the total population of the country. Over the next 10 years, our elderly population increased by 50 million. Plus the stock of old people, China's 60-year-old population has reached 167 million, accounting for 12.5% of the total population, and an annual increase of nearly 10 million people. By 2020, China's elderly population will reach 248 million, and the aging level will reach 17%. By 2050, it is expected to enter the stage of severe aging, when China's elderly population reached 437 million, accounting for more than 30% of the total population.　　With the acceleration of China's aging population, empty-nest old people, the elderly, the elderly, lost the elderly team will rapidly expand, the endowment of the industry contains trillions of of yuan business opportunities need to be developed. Insurance funds for the endowment industry Investment, is a creative and win more capital arrangements. At present, our country's endowment institution mainly adopts the traditional way of nursing home. Although the nursing home beds are in short supply, the environment, management style and the mood of the aged still make many people who can not take care of themselves, especially the vitality, so that the business opportunities of the new endowment community are prominent. However, the pension community from the project to the development, operation and recovery, the cycle is quite long, and in the regulations, systems and mechanisms have a lot of uncertainty. Compared with stocks, funds, bonds, gold and real estate investment, pension community investment time is long and slow. Because the endowment Community investment cannot obtain the huge profits in the short term, it is difficult to cause hot money chase. On the other hand, in terms of funding sources of endowment community Investment, the Insurance fund intervention has the prerequisite and the continuing advantage. The accumulation of insurance funds and the characteristics of long-term holding, with the old-age community gradually developed, delivery and steady recovery to form a corresponding closed loop, so that insurance companies can be low-risk intervention, long-term stable operation and steady profit. In combination with the construction of the old-age community in real estate development, we can effectively resist the currency through the possession of the entity assetsInflated risk and share the benefits of asset appreciation. The use of insurance funds and its benefits directly determine the interests of the insured.　　Low risk, long-term steady profit of the investment way, can effectively guarantee the interests of the insured, so as to ensure the healthy and stable development of insurance companies. The rise of China's middle class is accumulating a growing source for the pension community. If the present middle class is characterized by administrative type, technical research type and management operation type, the team develops rapidly. Some scholars predict that China's middle class now accounts for 20% of the total employed population, and that if the current middle class grows by 1% per cent annually, 20 of the middle class can reach 40% of the total employed population. The figures are broadly in line with the forecasts of BNP Paribas, the US Merrill Lynch. According to a report by BNP Paribas, the number of middle-class households in China will reach 100 million by 2010, and Merrill Lynch predicts China's middle class will reach 350 million in the next 10 years. The results of more than 30 years of reform and opening-up have brought about a significant increase in the level of national culture, education, science and technology, and management, during which a large number of people who made important contributions to the national economic construction and social development are entering the aging stage. For the old people who have experienced the glorious and years of wind and frost, the prosperity of the elderly groups, and the decline in physical strength, possession of wealth but no care in the home, what should be the arrangement of old age, is the elderly groups themselves and their families and the community need to seriously consider the problem. Although all old people look forward to the family's material support, life care and spiritual comfort. However, the frequent flow of population, aging and dependency ratio continue to rise, will gradually change the current family pension model.　　It is clear that not only the current 167 million 60 years old, many of the elderly because of the limited capacity of existing pension institutions can not achieve institutional endowment, more than 9 million lost the wisdom of the elderly, faced with more serious difficulties, coupled with a strong ability to pay the vitality of the elderly needs of the huge endowment, the rapid development of China's The endowment industry construction has clear government policy support intention. Needless to think, our country is still in the primary stage of socialism, the state's financial ability to pay can not widely provide favorable conditions for the institutions, so the current and long-term pension should be and must be shared by the family, society and the Government, The endowment institutions with superior conditions can only be realized through industrialization and marketization operation. CPC members of the Politburo, Vice-premier of the State Council, the director of the National Working Committee on Aging Hui Liangyu January 28, 2010 in the National Working Committee on Aging, said: "The relationship between the livelihood of the elderly and national stability, is China's reform and development can not be ignored in the overall and strategic issues."　　We should increase the devotion to the old-age service facilities, support the old-age services, encourage the social forces to set up the old service facilities and service institutions. The Endowment industry investment is a strategy that wins more and more. From the trend of population aging and the curve of population growth, the endowment industry will gradually form a strong economy in the next 30 years.Strong growth point, as an emerging industry actively participate in and contribute to the healthy and sustainable development of the economic cycle. The development of the endowment industry is bound to advance the construction of the old-age community, which also helps to transform some of the current real estate developers surplus capacity, which is conducive to the healthy development of the real estate industry. Real estate industry affects up to dozens of industries, the development of real estate industry will have a significant impact on the national economy, the new cycle of national economy to make incremental contributions. In the process of rapid urbanization, the construction of the old-age community can also relieve the pressure of the facilities and service in the urban center. At the same time, the construction and operation of the old community can also effectively alleviate the employment pressure. According to the proportion of 8.5% of the old people entering the pension institution, the capacity of the pension institutions should now be 14.2 million.　　If every 4 elderly people can bring a job, construction cycle 10, considering the acceleration factor of population aging, the construction and operation of the pension community can create thousands of jobs. The Times called for a group of entrepreneurs with strong social responsibility and public interest, a group of enterprises with strong financial resources and higher social prestige to actively participate in and contribute to the endowment in China, to join the construction and development of the endowment industry.　　It is undoubtedly a wise choice for insurance funds to intervene in the endowment industry investment, especially for the endowment community. (the author is professor of accounting department of Xiamen University and Director of Accounting Development Research Center)