In milestone move, China launches private pension scheme



* Employees able to contribute up to 12,000 yuan per year

* Scheme to launch in several cities before national rollout

* Intended to address challenges of ageing population

BEIJING, April 21 (Reuters) - Chinese employees will henceforth be able to invest and supplement funds in their pension accounts, authorities said on Thursday, launching the country's first private pension scheme as they tackle economic challenges linked to an ageing population.

Employees can contribute up to 12,000 yuan ($1,860) per year to their pension fund under the new scheme, which will be rolled out with one-year trials in some cities before being implemented nationwide, the government said in a policy document on its website.

Until now, both employees and employers have contributed fixed amounts under state pension plans.

The milestone marks the official launch of China's private pension sector after almost four years of pilots, and is expected to spur foreign insurers and asset managers to accelerate their expansion into the world's most populous nation.

"In the mid to long term, the new policy will benefit the retirement market by helping to accumulate more retirement income, increasing residents' retirement savings as well as investing awareness," said Leo Shen, Shanghai-based China head of fund management business at Allianz Global Investors.

In 20 years, 28% of China's population will be more than 60 years old, up from 10% today, making it one of the most rapidly-ageing populations in the world, according to the World Health Organization.

The scheme "should also benefit China's onshore capital market by providing an additional source of long-term capital," Shen told Reuters.

Part of the challenge for policymakers will be to persuade individuals to invest part of their earnings in the scheme. In 2021, average per capita disposable income nationwide stood at 35,128 yuan.

To encourage participation, the contributions - whose maximum value the government will adjust as economic conditions dictate - will be eligible for tax breaks, while the securities regulator said it would quickly formulate rules to facilitate pension investment by mutual funds.

Pension money "can provide more long-term, and stable funds to develop the real economy, via capital markets," the China Securities Regulatory Commission (CSRC) said in a statement on its website.

Funds held in the accounts can be invested in certain financial products, like banking wealth management products, deposits and public funds, and investors are to bear the corresponding risks, according to the government document.

Those who will be eligible for the scheme include urban employees who already contribute to their basic pension insurance under the state social security system.

If a private pension holder dies, the assets their account can be bequeathed.

Independent consultancies estimate China's private pension market will grow to at least $1.7 trillion by 2025, from $300 billion currently.

Last July, Allianz received approval to form the first wholly foreign-owned insurance asset management company in China. In November, it bought out its Chinese partner from a life insurance joint venture. ($1 = 6.4396 yuan)
Reporting by Liangping Gao and Ryan Woo; Additional reporting by Samuel Shen in Shanghai and Selena Li in Hong Kong; Editing by Simon Cameron-Moore and John Stonestreet

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明