Official announcements from the Chinese government or legislative records

China Expands Private Pension Scheme Nationwide from Dec 15

Dec 12, 2024, 06:07 AM

China has announced the nationwide expansion of its private pension program, effective from December 15, 2024. This initiative, previously tested in 36 pilot cities and regions, aims to address the challenges posed by the country's rapidly aging population. The private pension scheme is voluntary for individuals and operates in a market-oriented manner, allowing contributions up to 12,000 yuan (about $1,670) annually to individual pension accounts. The expansion includes specific pension savings and broad-based index funds in the catalog of individual pension products, with government bonds also added to eligible products. Chinese banks are preparing for this expansion by setting account-opening tasks. The move has led to a positive market response, with indices jumping after the announcement.