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ECONOMY

Greying China Bolsters Support for Pension Fund

By Luo Ruiyao, Huang Zhulun and Pan Che
Analysts estimate that the state-owned enterprise shares transferred to government bodies in the recent pilot pension project could be worth as much as 4 trillion yuan ($603 billion). In the picture above, retirees dance in a Shanghai park in October. Photo: Visual China
Analysts estimate that the state-owned enterprise shares transferred to government bodies in the recent pilot pension project could be worth as much as 4 trillion yuan ($603 billion). In the picture above, retirees dance in a Shanghai park in October. Photo: Visual China

A pilot program for state-owned enterprises (SOEs) to transfer a portion of their shares to the national pension fund is China’s latest attempt to bolster its social insurance system as the country grapples with a rapidly aging population.

China’s basic pension insurance fund is a crucial part of the country’s social insurance system as it covers more than 375 million urban and township employees.

Last week, the State Council, China’s cabinet, issued a document requiring several SOEs administrated by central and provincial governments to transfer 10% of their shares to the National Council for Social Security Fund and asset management firms created and wholly owned by the provincial governments.

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