What’s new: China’s banking and insurance regulator Wednesday announced the first batch of insurance products available for consumers to purchase under the country’s newly launched personal pension system.
The first seven insurance products are provided by four life insurers and two pension insurance companies: China Life Insurance Co., People’s Insurance Co. of China, Taiping Life Insurance Co. Ltd., Taiping Pension Co. Ltd., Taikang Life Insurance Co. Ltd. and newly established National Pension Insurance Co.
The China Banking and Insurance Regulatory Commission (CBIRC) Tuesday also issued final regulations to insurance companies that want to sell retirement savings products to millions of individuals across the country, setting the threshold and types of insurance products sold in the personal pension system.
The background: The State Council, China’s cabinet, in April released a policy document on developing the country’s private pension system, aiming to supplement pension funds in the state-run basic pension insurance system and employer-sponsored pension plans, and address China’s looming pension shortfall.
Under the personal pension system, people will be able to make voluntary tax-deductible contributions of up to 12,000 yuan ($1,700) a year into private pension accounts, which can be invested in eligible financial products including bank deposits, mutual funds, commercial pension insurance and wealth management products.
The top securities watchdog Tuesday also issued an initial list of 34 such institutions that qualify to start operating private pension businesses. They include the “Big Six” state-owned commercial banks, 12 joint-stock banks and five city commercial banks.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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