China Clears the Way for New Personal Pension System

China cleared the way for the newly authorized personal pension system to go into effect as the government issued a key implementation document and banking and securities regulators published rules covering investment products and the businesses offering them.

The State Council started the ball rolling in April for the development of China’s first-ever personal pension system. The goal is to bulk up the minuscule third leg of the country’s retirement income system — personal accounts to augment pension programs offered by the government and by private employers. The new personal pension industry is expected to reach well into the billions of dollars of assets.