China’s Aging Society Sparks Pension Interest, Becomes the Next Opportunity for Asset Management Industry

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Written by Doug Hampton
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HONG KONG and SHANGHAI, May 24, 2023 /PRNewswire/ — China is with great potential and very open for high standard players, says Jacqueline Zhang, Deputy General Manager of Ping An Asset Management Co., Ltd. (“Ping An AMC”), during a panel at the Future of Asset Management Asia event, hosted by the Financial Times in Singapore on May 11.

Ping An AMC, a member of Ping An Insurance (Group) Company of China, Ltd. (“Ping An” or the “Group”, HKEx:2318; SSE:601318), provides professional asset management service for institutional investors, including both China and foreign asset owners, who are investing in China for the long-term.

“The China market is of great potential and very open for high standard players. We welcome capable top players to work together on the high quality of the market,” said Ms. Zhang. “There will be more collaborations rather than competition, because the market is big enough for everyone.”

Pension market a “great opportunity” for asset management industry

In terms of onshore investment, China’s rapidly aging society is a huge growth opportunity for China’s asset managers, Ms. Zhang said. By 2035, the share of China’s population over age 65 will exceed 20%, according to government projections. It only took 22 years for China’s over-65 population to grow from 7% to 14%, which is in acceleration. People need to think about their own financial security for retirement, Ms. Zhang said. “That indicates a great opportunity for the asset management industry.”

In November 2022, China announced the implementation of private pension plans for individuals, in addition to government pensions and employer programs. More than 24 million individual pension accounts have since been opened, but there is a gap in public understanding of the products. “I think there’s a lot of room and great potential for asset managers to do the client education and to promote the pension products,” Ms. Zhang said.

Investor education and post-investment service, a new focus for China’s asset managers

Last year, the China Securities Regulatory Commission released guidelines to accelerate the “high quality development” of the mutual fund industry, encouraging long-term investment behaviors rather than short-term ones. “It is a very important signal that client education and post-investment services will be the new focuses for asset managers in China,” Ms. Zhang said.

The aligns with Ping An AMC’s investment focus on managing long-term, large-scale funds for asset owners and investors. Its client education services include regular market views, insight reports, account performance reviews and investment forums to help investors understand the latest developments in China’s capital market.

Ping An AMC is one of the largest and most influential institutional investors. As one of the leading asset managers in China, the company provides professional asset management solutions to domestic and international institutional investors, such as sovereign wealth funds, pensions, insurance companies, banks and other financial institutions. In terms of assets under management, it is the third largest asset manager in Asia and among the top 50 global asset management companies, according to Investment & Pensions Europe. As the end of 2022, Ping An AMC had RMB4.37 trillion (USD637 billion) in assets under management.

For more information, please visit www.group.pingan.com and follow us on LinkedIn – PING AN.

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SOURCE Ping An Insurance (Group) Company of China, Ltd.

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