New Pension Scheme To Help Develop China's Financial Markets

China's recently launched individual pension system will help transform its financial markets by developing long term investment products and management skills, according to Dong Dengxin, Director of the Institute of Financial Securities, writing for the 21st Century Business Herald late on Monday. He noted that allowing different types of financial institutions to offer pension products will promote competition needed to develop the market rapidly. China’s financial markets have been characterised by short term and speculative investing, and the development of pension products provides an opportunity to develop a longer term investment culture. The scheme will be piloted in the 36 cities before being introduced nationwide.