On Friday, China’s banking and insurance regulator announced that wealth management product trials will be launched in four cities for retail investors looking to boost their retirement savings.
Wealth management units of the Industrial and Commercial Bank of China, China Construction Bank, China Merchants Bank, and China Everbright Bank will sell the products.
According to a statement from the China Banking and Insurance Regulatory Commission (CBIRC), the trial products will run for a year starting Sept. 15 and each institution involved will be able to generate up to 10 billion yuan ($1.6 billion) in products.
China is courting both public and private sector participation as it modifies its $1.2-trillion pension system in preparation for a rapidly aging population that faces underfunding.
To help boost money for retirees, China established a national pension business with a registered capital of 11.2 billion yuan, with 17 bank-affiliated wealth management units, insurers, and other entities acquiring stakes.
In a statement, CBIRC advised the four institutions involved to create better asset management solutions to assist diversify retirement income sources.
Despite impending revisions, China’s retirement age for public officers and white-collar workers is 60 for men and 55 for women.
Wuhan, the central city, will start trials, as will Qingdao, the eastern coastal city, western city Chengdu, and Shenzhen the southern metropolis.
