China's pension wealth management market sees steady operation

Senior citizens play Chinese checkers at a community-based day-care center in Hanshou County, central China's Hunan Province, July 20, 2022. (Xinhua/Chen Sihan)

BEIJING, Dec. 6 (Xinhua) -- China's pension wealth management market has seen steady operation since the country launched the pilot program last year, market data showed.

The first four pilot retirement savings wealth management products, unveiled last December in four designated cities, have all achieved yields so far, data confirmed.

The performance of these products over the past year reflected their ability to offer steady returns despite volatilities in the financial market, said Dong Ximiao, chief researcher with Merchants Union Consumer Finance Company Limited.

So far, about 50 pension wealth management products have been launched in the market, according to ChinaWealth.com.cn -- a website providing information on the country's wealth management business.

China unveiled the first batch of pilot retirement savings wealth management products in the cities of Wuhan, Chengdu, Shenzhen and Qingdao last year, aiming to broaden the sources of retirement income. The pilot program was expanded to another six cities in March 2022.

Analysts expected higher yields from these products in the medium to long term, saying that recovery will continue as the country's sound economic fundamentals will remain unchanged.

China has a three-pillar old-age insurance mechanism, covering the national basic old-age insurance, enterprise and occupational annuities, and commercial old-age financial products and the private pension plan -- which combine to form the third pillar. As part of the private pension plan, the retirement savings wealth management market enjoys great potential for development.