China to Ease Pension Market Access for Global Asset Managers
Zhou Ailin
DATE:  Jan 24 2025
/ SOURCE:  Yicai
China to Ease Pension Market Access for Global Asset Managers China to Ease Pension Market Access for Global Asset Managers

(Yicai) Jan. 24 -- China plans to relax certain regulatory standards to make it easier for global asset managers total part in the country’s burgeoning pension market.

Regulators will relax the review standards for firms seeking to manage pension funds, according to a document recently issued by a department in the China Securities Regulatory Commission. When assessing whether foreign fund managers meet the obligatory business size, the assets their offshore parent companies have under management will now be included.

By including the assets their parent companies manage, the door will be fully opened to foreign public fund managers, an industry insider told Yicai.

China’s pension system is undergoing reforms to address an aging population and growing financial needs. The market is expected to grow quickly as the population ages and private pension participation grows.

It could be worth CNY28 trillion (USD3.9 trillion) by 2030, with private pensions accounting for CNY7 trillion (USD966 billion), according to a forecast by KPMG China and the Asia Securities Industry and Financial Markets Association.

The insider said that, with the exception of money market funds, the CSRC has required fund managers interested in setting up pension funds to have managed assets of more than CNY20 billion (USD2.7 billion) over the previous three years. J.P. Morgan Asset Management China is the only global fund manager in the country that can meet this requirement.

“Now that the requirements for operating scale have been relaxed, our company has begun to design new pension fund products and to prepare the business layout,” a foreign fund manager told Yicai.

Editors: Tang Shihua, Kim Taylor

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