China Banking and Insurance Regulatory Commission expands pension wealth management product pilot nationwide for three years and raises quotas to five times net capital after risk-capital deductions

The China Banking and Insurance Regulatory Commission issued a notice on promoting the sustained and healthy development of pension wealth management, expanding the pension wealth management product pilot to all regions and setting a three-year trial period from the date of issuance. The notice contains 22 provisions across six areas, including expanding the pilot, improving product design, offering more diversified pension financial services, strengthening internal governance, supporting the pension industry and tightening risk management. Pilot participation is extended to wealth management companies that have been operating for at least three years and meet prudential management conditions, while pilot quotas are increased to five times each participating institution’s end-of-prior-year net capital balance after deducting risk capital, subject to supervisory adjustment. It also encourages investment in long-term, high-quality assets aligned with pension needs, greater support for the health sector, the pension industry and the “silver economy”, and expanded services such as pension wealth management accounts, advisory consultation and information queries. Product and investment-side controls include stronger disclosure and risk warnings, improved fee models, prudent investment strategies and risk resolution mechanisms, with product and personal pension wealth management disclosures and data exchange to be handled via the wealth management industry platform of the Banking Wealth Management Registration and Custody Center. The regulator indicated it will intensify follow-up supervision and guidance to support implementation of the notice.