(Yicai Global) Sept. 8 -- City legislators in the city of Shenzhen in China's southern Guangdong province have received initial policy support to run a pilot house-for-pension scheme, and some preparatory and complementary work has already been completed, newspaper Nanfang Daily said, quoting officials at the Shenzhen Civil Affairs Bureau.

A house-for-pension insurance scheme involves elderly property-owners pledging their homes to an insurance company after their death in exchange for pension payments.

The insurance company then has the right to dispose of the house, and disposal proceeds will first be used to repay pensions the insurer has provided and other relevant expenses.

The China Insurance Regulatory Commission announced in June 2014 that Beijing, Shanghai, Guangzhou and Wuhan would run pilot house-for-pension schemes, or reverse mortgages, between July 1, 2014 and June 30, 2016.