(Yicai Global) Sept. 10 -- China will launch a pilot wealth management product scheme for retirees in four cities this month, the latest move by the country to build a multi-level pension insurance system.
The pilot will begin in Wuhan, Chengdu, Shenzhen, and Qingdao on Sept. 15 and will involve ICBC Wealth Management, CCB Wealth Management, CMB Wealth Management and China Everbright Wealth Management, the China Banking and Insurance Regulatory Commission said in a notice on its website today.
During the trial period, tentatively a year, the total size of funds raised by each participating financial institution from such wealth products is limited to CNY10 billion (USD1.6 billion).
China’s pension insurance system currently includes basic state pension insurance, corporate annuity insurance and individual commercial pension insurance. Facing the problem of an aging society, the country is trying to promote greater development of corporate and individual pension insurance.
The basic state pension insurance covers nearly 1 billion residents, CBIRC Chairman Guo said at the 2020 Financial Street Forum. Guo said China’s aging population has made it an urgent task to develop individual pension insurance, adding that the financial sector can and should play an important role.
Editor: Tom Litting