Global fund managers eye trillion dollar pension business in China
Global asset managers are lobbying Beijing to offer tax benefits and other incentives to entice China’s aging population to invest in mutual funds for their retirement, as funds eye a multi-trillion dollar opportunity in commercial pensions.
Their hopes for a bigger role in China’s pension market and its reform process received a boost this month when regulators published guidelines for the introduction of Western-style pension target funds.
Although such fund-of-fund (FoF) pension products are popular in mature markets like the United States, they will have a hard time getting off the ground in China without supportive policies that are now lacking, such as preferable tax treatment, fund managers say.
Read More: Reuters
