China's National Financial Regulatory Administration issued a notice on promoting the sustained and healthy development of pension wealth management products, expanding the pilot programme nationwide and strengthening alignment with the individual pension system. The pilot term is extended to three years, eligible pilot institutions are broadened to wealth management companies that have been operating for at least three years and meet prudent management conditions, and the pilot quota is raised to five times each institution’s prior-year-end net capital balance after deducting risk capital, with scope for supervisory adjustment under prudential principles. Where a wealth management company participates in both the pension wealth management pilot and individual pension wealth management business, newly issued pension wealth management products can be automatically included in the individual pension product list. The notice also sets out measures to enhance product design, investor services and risk controls. It encourages longer-dated offerings, including products with maturities of ten years or more or minimum holding periods of at least five years, and supports flexible design on subscriptions, redemptions and dividends. Pilot institutions are supported to open a pension wealth management account for each investor to record holdings and changes, and may provide pension advisory services subject to suitability obligations and conflict-of-interest controls. On risk management, wealth management companies are required to establish long-term assessment mechanisms incorporating investors’ long-term returns into appraisal and remuneration for investment and sales staff, strengthen disclosures and risk warnings by linking performance presentation to underlying asset performance and illustrating potential outcomes under different risk conditions, standardise use of product risk reserves while exploring multi-layer risk mitigation mechanisms, and route information disclosure, interaction and data exchange for both pension wealth management and individual pension wealth management products through the industry platform of the Banking Wealth Management Registration and Custody Centre.
China Banking and Insurance Regulatory Commission 2025-10-30
China's National Financial Regulatory Administration expands pension wealth management pilot nationwide extends it for three years and raises quotas to five times eligible net capital
China's National Financial Regulatory Administration has expanded the pension wealth management pilot nationwide for three years, including wealth management companies meeting specific criteria. The pilot quota is increased to five times each institution’s prior-year-end net capital balance, with supervisory adjustments allowed. The notice outlines measures to enhance product design, investor services, and risk controls, including longer-dated offerings and improved risk management practices.