17 Chinese financial institutions led by the wealth management vehicles of big state-owned banks plan to jointly launch a new nationwide pension fund.
Guomin Yanglao Baoxian Share Co., Ltd. (国民养老保险股份有限公司) (National People’s Pension Insurance Share Co., Ltd. ) will be headquartered in the Xicheng district of Beijing and have registered capital of 11.15 billion yuan, according to information made public by the Insurance Association of China (IAC) via its official website.
According to IAC the business scope of the fund will include: commercial pension plan management operations, entrusted management of renminbi and foreign currency funds for the purpose of pension welfare; group pension insurance and annuity operations and personal pension insurance and annuities operations.
The new fund will have 17 founding shareholders, including the wealth management subsidiaries of Chinese banks, as well as insurance companies, securities companies and the financial services platforms of central state-owned enterprises (SOE’s).
These shareholders include the wealth management subsidiaries of five big state-owned banks – including ICBC, Agricultural Bank of China, Bank of China, Bank of Communications and China Construction Bank, each of whom will contribute 1 billion yuan to obtain 8.97% stakes respectively, jointly acting as the largest shareholders.
The one remaining big state-owned bank – Postal Savings Bank of China, will contribute 650 million yuan to obtain a 5.83% stake, while the wealth management subsidiaries of China CITIC Bank, China Merchants Bank and Industrial Bank Co. will each hold 4.48% equity stakes.
Taikang Life Insurance will make a capital contribution of 200 million yuan, for a 1.79% equity stake.