NEWS: China will promote the development of pension services

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To cope with the aging society, the State Council on Tuesday issued suggestions on promoting the development of pension services, proposing to reduce the tax burden on pension services, promote the financing of pension service institutions, and expand the issuance scale of corporate bonds related to the pension service industry.
According to the opinions published on the government website, the issuance plan should be designed scientifically according to the situation of the return of enterprise funds, and the bond term, option and repayment of principal and interest should be set reasonably and flexibly. It can be used to provide living care, rehabilitation care and other service facilities for the elderly, as well as to develop rehabilitation aids products and supplies.
Enterprises are encouraged to issue renewable bonds for the construction of projects with long payback period, such as pension institutions. For pension service projects with stable cash flow after the completion of the project, it is allowed to provide pledge guarantee for bond issuance with the project's future income right. It is allowed to provide credit enhancement for bonds by means of mortgage guarantee of the right to use construction land. Explore the issue of project income bills and project income bonds to support the construction and operation of pension service industry projects.
We will fully implement the national treatment of foreign-funded pension service institutions. Overseas capital participates in the development of pension services in the Mainland by means of public private construction, government purchase services, government and social capital cooperation, and equally enjoys domestic capital treatment. Old-age institutions set up by overseas capital in the Mainland shall enjoy preferential policies such as operating subsidies equally if they receive guaranteed objects from the government.
China is committed to expanding domestic demand and stabilizing investment in order to curb the economic downturn. However, on the way to continuously release the potential of domestic demand, how to deal with the challenges of aging population, high debt rate of residents and poor income expectations is crucial, which is related to the momentum of China's sustainable economic development.


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