China Economic Information Service: 

We know that in recent years, China has continuously promoted the specialized development of old-age financial institutions, and old-age financial reforms are steadily advancing. Could you please introduce the current situation of this work and the arrangements for the next steps? Thank you.

Yin Jiang'ao: 

This question is closely related to each of us. The NFRA adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, continuously deepens the reform of commercial old-age finance, and has achieved certain results in guiding old-age insurance institutions to focus on the transformation and development of their main businesses, and serving the construction of China's multi-level and multi-pillar old-age insurance system.

First, we have vigorously developed commercial insurance annuities. We support insurance institutions in leveraging their advantages in long-term, stable investment and old-age risk management to continuously expand the supply of commercial insurance annuities. Currently, the accumulated scale of pension funds has exceeded 6 trillion yuan, covering nearly 100 million people.

Second, we have initiated a pilot program for old-age wealth management products. These products adopt asset allocation strategies that meet old-age needs, realizing the long-term and stable appreciation of investors' pension benefits. Since the pilot program started in September 2021, 11 wealth-management companies have issued 51 products in 10 pilot cities, attracting approximately 470,000 subscribers and reaching a scale of more than 100 billion yuan.

Third, we have promoted the development of specific old-age deposit pilots. These deposit programs are piloted by the four banks — Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank — in five cities. The terms are divided into four categories: five years, 10 years, 15 years, and 20 years, with interest rates slightly higher than those of five-year deposits at large banks. Since the pilot programs began in November 2022, approximately 200,000 depositors have participated, and the total balance is nearing 40 billion yuan.

Fourth, we have initiated a pilot program for commercial pension businesses. Commercial pension is offered by old-age insurance companies, encompassing old-age planning, account management, and financial products to deliver comprehensive life-cycle pension fund management services to consumers. Since the pilot program commenced in January 2023 in 10 provinces (municipalities), more than 590,000 accounts have been opened.

Fifth, we have promoted the regular operation of exclusive, commercial, old-age insurance. This product offers universal old-age insurance with simplified insurance process, flexible payments, and stable returns. It ensures annuity payments are received after reaching the age of 60. The pilot program began in June 2021 and was officially launched in October 2023. As of the end of the previous year, the number of policies stood at approximately 740,000, with the accumulated old-age reserve exceeding 10.6 billion yuan.

Sixth, we have actively fostered the growth of the personal pension system. We provide guidance to commercial banks, wealth-management companies, insurance firms, and other entities to actively participate in personal pension offerings. We also encourage the establishment of a comprehensive industry information platform and the creation of product display areas to simplify consumer decision-making.

Seventh, we have consistently advanced the professional development of old-age insurance companies. In November 2023, the interim measures for the supervision and management of pension insurance companies were issued, laying out precise requirements for corporate governance, business management, and the enhancement of risk prevention and control within pension insurance companies.

Next, we will thoroughly study and implement the guiding principles of the Central Financial Work Conference, focusing on the critical task of developing financial services for elderly care and implementing policies related to the silver economy. We will encourage insurance institutions to leverage their advantages in offering insurance protection to vigorously develop commercial insurance annuities. We will use exclusive commercial pension insurance as a key approach to actively meet the pension security needs of people in new industries and business models. We will further optimize the supply of financial products related to private pensions and improve the related regulatory rules in accordance with the characteristics of private pensions. We will promptly summarize experiences and continuously promote the pilot of commercial pension finance. We will also steadily push forward the transformation and development of pension insurance companies, guiding them to leverage their professional advantages and better participate in and serve the construction of China's multi-tiered and multi-pillar old-age insurance system. Thank you!