HONG KONG:  , China will beef up its 2.88 trillion yuan ( US$ 406 billion ) social security fund, making it “bigger and stronger” to help support its rapidly ageing population as the number of new births and younger workforce to support its seniors shrink.
According to party secretary Ding Xuedong, the National Social Security Fund will “effectively” respond to population ageing and “improve the policy mechanism for the development of the elderly care industry,” according to comments made on Monday ( Aug 19 ) in comments made in Communist Party newspaper the Study Times.
Over the next decade, approximately 300 million Chinese may leave- almost the equivalent of the entire United States people. One in every two persons aged over 65 in the Asia-Pacific territory may live in China by 2040, Euromonitor quotes.
The bank, which was established in 2000, is a” proper reserve fund for interpersonal security requirements during the height of people aged and the weight of my country’s social security system,” according to Ding.
According to Ding, China has now entered a reasonable age period, and the subsequent significant age will mean the “urgency and difficulty of expanding and strengthening the strategic reserve fund are unparalleled.”
By 2035, according to the state-run Chinese Academy of Sciences, China’s income structure will be insolvent.
Ding outlined plans to “actively share crucial financial information to the public” and carry out investments “in an open and transparent manner” while expanding the scope of pension fund investments.
The statements aim to stabilise women’s aspirations of ancient time care, he said.
The fund may “increase long-term equity investments in corporate and fundamental areas related to the regional economy and people’s livelihoods” to increase private capital market investment.
Investments may be increased in scientific and technological innovation and new excellent performance, key priorities for the state, Ding said.