China plans capital market reforms to support its ageing society

China’s National Social Security pension fund, is now the world’s tenth biggest and many expect it to leapfrog to the third largest globally within three years.

Reported here on CCTV, the country boasts one of the highest savings rates in the world. With inadequate social security support, many tuck cash away for old age. Ping An Insurance estimates the per person payout in developed nations is 100 times more than that of China.2013-10-10_10-08-55

With China’s staggering pension assets, financial liberalization could provide the outlets for investment. The funds could be invested in various asset classes beyond A-shares. And in a sign that China is serious on pension reform, Premier Li Keqiang has highlighted pension services as a sunrise industry to drive economic restructuring.