China’s fledgling private pension scheme draws 20b yuan in contributions: sources

CONTRIBUTIONS to China’s fledgling private pension accounts have reached about 20 billion yuan (S$3.87 billion) since their inception last November, with just under 70 per cent of the funds invested, Caixin has learned, suggesting hesitation among some participants due to unfamiliarity with the system.

Around 13.5 billion yuan has been invested across a range of eligible financial products, with the majority of the remaining funds just sitting idle in people’s accounts, said people familiar with the matter.

Bank deposits have been by far the most popular choice attracting close to 60 per cent of the total, the sources told Caixin. Mutual funds took up about 30 per cent, while pension insurance products and bank wealth management products (WMPs) had each only drawn in about 4 per cent of the funds, they said.