The Asia Securities Industry & Financial Markets Association (ASIFMA) and KPMG China have released a joint report about the future of China’s pension market.
It provides perspectives on some of the recent and potential reforms of China’s pension fund market and considerations for global asset management firms in forming strategies in the space.
ASIFMA reported that the pension assets industry in China could grow to a total of CNY22trn-CNY28trn by 2030. This comes after China’s Pillar 3 pension reform which opened the market to individual private pensions for the first time.
The private pension market in China is projected to grow to CNY4trn (£423bn, $552trn, €506trn) by 2030.
Vivian Chui, head of securities and asset management at KPMG China said: “This area is very new and has so far been undergoing pilot programmes, but the potential is clearly promising as a new form of investment, especially in light of recent challenges in the Chinese real estate market where Chinese investors have traditionally put their savings in addition to cash.
“Already around 30 million tax-deferred individual accounts were set up shortly after they were launched last November. We see particular potential here for foreign players who have experience in pensions.”
