Profits remain elusive in China eldercare

The Government’s tight regulation of elderly care are to blame according to this article in the Economist.

The McKinsey Global Institute, a think-tank, has calculated which of the world’s cities will have the largest populations of rich older people in future. Shanghai and Beijing are the leaders, and five of the top ten cities are in China. This explains the foresightedness of Fosun, a major Chinese conglomerate with ambitions to become the next Berkshire Hathaway.Starcastle

Its Shanghai joint venture between with Fortress Investment Group, an American private-equity firm, Starcastle is an upmarket development for pensioners. Visitors find a colourfully decorated apartment building filled with energetic oldies.

Since time immemorial, Chinese children have been expected to take care of their aged parents—but rising incomes and shifting norms are changing things. The 93-year-old former boss of a hotel chain insists such stylish retirement homes, previously unheard of in China, are the future: “It’s very advanced, it’s convenient… and the kids stop worrying.”

For a business selling lifestyle living, it is bizarre that their website is almost devoid of pictures to inspire the imagination of potential residents and their kin. Just a few obligatory smiling faces and some ‘cold’ room layout shots. Somebody help them, please!