Aging has become a global issue, and developing a sustainable pension finance system has emerged as a critical concern for governments, financial institutions, and academia worldwide. As outlined at the Central Financial Work Conference, pension finance is one of the five key areas where China must exert substantial efforts.

The picture shows Chenyang Wei hosting the forum

On May 27th, 2024, the Tsinghua PBCSF Global Finance Forum was held in Hangzhou, with Plenary Session IV focusing on "Building a Diverse Pension Finance System". This session featured extensive discussions on how to innovate financial mechanisms and tools, optimize policy design, and provide more reliable and sustainable retirement security for the populace. Zhou Yanli, former Deputy Party Secretary and former Vice Chairman of the China Insurance Regulatory Commission; Dong Keyong, Secretary-General of the China Ageing Finance Forum; and Fan Hua, Head of China at BlackRock, delivered keynote speeches. Dr. Wei Chenyang, Director of Finance MBA Education Center and Research Center for China Insurance and Pension Finance at Tsinghua PBCSF, moderated the session.

The picture shows Zhou Yanli delivering a keynote speech

During his opening speech, Zhou Yanli emphasized the "Exploration of Innovation to Promote the Upgrading of Elderly Financial Services Achieving High-Quality Development on the Path of Chinese-Characteristic Elderly Finance." He highlighted that personal pension insurance products are vital components of the third pillar of pension security in China. As policy support and market demand increase, the number of personal pension products is also expected to rise. Regulatory authorities have supported the pilot of exclusive pension insurance, achieving significant results. Pension insurance funds should be used as patient capital to leverage their long-term funding advantages and inject stability and development vitality into the capital market.

Zhou Yanli proposed enhancing the innovation of pension insurance products and diversifying services. The insurance industry should expand pension insurance products to meet changing market demands and diverse consumer expectations. Additionally, it is crucial to improve risk management and asset allocation capabilities. The pension funds are generally not sufficient to participate in the capital market effectively, and investment tools are limited. Future efforts will focus on improving the insurance industry's participation in capital market operations, enhancing investment capabilities, and strengthening risk management.

The picture shows Jie Jiao presenting a certificate to Keyong Dong

As a special feature of the forum, Tsinghua University PBC School of Finance announced the establishment of the Tsinghua PBCSF Pension Finance 50-person Forum based on the China Ageing Finance Forum, appointing Dong Keyong as the Secretary-General and the Chief Expert of the China Insurance and Pension Finance Research Center.

The picture shows Keyong Dong delivering a keynote speech

Dong Keyong, in his speech titled "Elderly Care Needs and Characteristics in the Silver Economy Era," pointed out that China is undergoing a rapid aging process, posing new challenges to its economy. The three pillars of China's pension system are currently unbalanced, and the development of accumulative pensions is insufficient. In the long run, the replacement rate of basic pension insurance for urban enterprise employees is on a downward trend, and residents need to enrich their pension reserves to achieve a higher level of pension life. The current pension service system is highly dependent on public sector welfare pension facilities, and the supply is insufficient to meet the diversified needs of different income groups.

The picture shows Hua Fan delivering a keynote speech

Fan Hua, Head of China at BlackRock, also delivered a keynote speech. Wei Chenyang concluded the session by emphasizing that the establishment of the Tsinghua PBCSF Pension Finance 50-person Forum is a significant milestone for Tsinghua PBCSF's think tank work in pension finance. This initiative creates new opportunities for the development of China's pension finance industry and the exploration of financial policies under the global aging trend. Further research information and think tank activities on pension finance will be released on the official account of China Insurance and Pension Research Center "PBCSF Insurance Observation".