China’s Pilot Pension Wealth Management Products Raise over 40 Billion Yuan Since Launch

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China’s first round of pilot pension wealth management products (WMP’s) have raised over 40 billion yuan in the six months since the launch of trials at the start of December, with analysts expecting them to become a mainstay product of bank wealth management subsidiaries.

As of 14 June, China had seen the release of a total of 24 pension WMP’s since the commencement of trials on 6 December 2021.

These pilot WMP’s have raised over 40 billion yuan in funds, with state-owned media hailing the start of the “issuance normalisation stage”.

Domestic analysts expect the market share of pension WMP’s to steadily increase in future, and for them to eventually become a key product for the wealth management subsidiaries of Chinese banks.

“In future the market scale and trial scope of pension WMP’s will further expand, abiding by the overall principles of ‘jogging in small steps and overall progress'”, said Yang Rong (杨荣), chief banking sector analyst with CSC Financial.

“This will enable pension WMP’s to gradually spread throughout the whole country, and in future become a mainstay of the third pillar of China’s pension system.”

Chinese consumers are expected to take enthusiastically to pension WMP’s due to the stability of their returns and the comparatively high benchmark for their performance.