What’s new: BlackRock Inc.’s majority-owned joint venture in China launched its first pilot pension wealth management product to tap into business opportunities among the country’s growing aging population.
The product, issued by BlackRock CCB Wealth Management, opened for investors Monday until May 9. The product will be launched in Guangdong and Chengdu and will mature in 10 years.
Underlying assets of the investment offering are mainly less-risky government bonds and financial bonds backed by policy banks, according to a product introduction.
"We think personal retirement wealth management products with longer investment horizons will be more attractive," said Tang Xiaodong, head of BlackRock, citing the Chinese government’s recent push to develop the private pension market to support the aging population.
The context: BlackRock CCB Wealth Management, a joint venture between BlackRock and China Construction Bank, is the first foreign-controlled institution approved to take part in China’s private pension market test. The company won approval in February.
Four domestic wealth management companies have also been cleared to sell private pension products in the program, which was launched in September 2021 aiming to boost residents’ retirement income and offer a supplement to the state-backed pension system.
A total of 16 retirement wealth management products have been launched under the pilot program, raising 42 billion yuan ($6.4 billion).
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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