"Matter of time"

Global asset managers have been lobbying Beijing to offer tax benefits and other incentives to encourage investment in mutual funds for retirement.

Manulife, which signed a pact with Agricultural Bank of China in 2017 to jointly explore opportunities in China’s pension and retirement market, is looking to establish a joint-venture pension management company.

It plans to draw upon its life insurance and asset management joint ventures in China to launch retirement solutions and products, said Calvin Chiu, head of Asia retirement at Manulife Asset Management.

“The government has expressed willingness to open up the financial services sectors in the country, it’s just a matter of time and priority. They do recognize the value that foreign players can add in the pension space,” he said.

China Banking and Insurance Regulatory Commission and the Ministry of Human Resources and Social Security did not respond to Reuters requests for comment.

“All countries are trying to shift pensions away from the iron rice bowl concept,” Gerry Grimstone, chairman of Heng An Standard Life said.

“There have been some attempts at this in China, but, the fact is, there is technology in the west, and an approach to this which the Chinese were keen to bring into their market.”

Reuters