The head of the Chinese banking regulator says that the growth of commercial pension insurance in China has helped to drive a rapid rise in pension funds.
Speaking at the International Pension Fund Supervisory Organisation Global Pension Fund Forum (国际养老金监督官组织全球养老金论坛), Guo Shuqing (郭树清) said that the assets of enterprise annuities under management reached 624.6 billion yuan in 2017, long-term pension funds are approaching 9 trillion yuan in total.
Guo called for the integration of pension fund reforms and efforts to drive long-term economic growth,and said that resolving the shortfall in pension funds from a long-term perspective will depend upon spurring economic growth.
“The pension fund system is the fundamental system of a nation, and when the pension system is irrational it can distort labour markets and social incentive mechanisms, raise enterprise operating costs, restrain the formation and accumulation of capital, and reduce resource allocation efficiency.”
Guo also said that the Chinese economy remained steady overall and that financial risk was still under control in general, despite marked changes in external conditions including the escalation of trade protectionism.