Presentation of Fa

654 Words3 Pages
Good afternoon everyone! First I would like to thank you all for this session module, especially Professor Liu and Kevin Dow. Thank you for your contributions in this module which broaden our views a lot. This presentation is the crystal of our group members, everyone made contribution on it. Our presentation will be divided into two parts. In the first part, I would like to show couples of “take-aways” in this module. Then, for the second part, Lady Wang Dan will make explanation to the questions, of course, only few typical questions will be explained in details, rest of them will be reviewed quickly. 1. Accounting and finance Actually the accounting provides information to the shareholders, creditor, government who are outside of…show more content…
Some of us may suggest investing the pension into stock. But I believe more that most of us will say No for such proposal because of its high risk. But don’t worry, you are not alone. In 1998, some NPC member had already give suggestions like this. The Prime Minister Zhu, he said NO to this suggestions because of the high risk in stock. We must keep safety first. So such proposal is killed at that time. If anyone who is interested in his speech, you could find out his idea in “Mr.Zhu’s Speech Record” . In 2012, the same investing plan was proposed again, just like 14 years most people still reject or doubt at such plan. But at this time, the government accepted the proposal and made a realistic schedule for it because the situation of pension was worse than 14 years ago. In the government schedule, they will invest 30% of pension insurance into stock and stock bond, the totally amount is about 600 billion. Do you feel scared with this plan? Obviously the answer is yes. Pls look at index of shanghai security since 1990. We could find out that the annual return of stock is about 14%. This diagraph shows the annual return of bond is about 3.5%. The difference between them is more than 10%. What is your feeling? Better or not? We can see the risk of return from stock is much better than bond. But why people still prefer to invest the money in bond? Maybe it is because of the myopic loss aversion, people always try to check the risk
Open Document