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Five Authorities Issues the Guiding Opinion on Financial Support to Accelerate the Development of Senior Care Service Industry

 

March 21, 2016

Source: Sina Finance

 

The People’s Bank of China, the Ministry of Civil Affairs, the China Banking Regulatory Commission and the China Insurance Regulatory Commission have jointly issued the Guiding Opinion on Financial Support to Accelerate the Development of Senior Care Service Industry, in an effort to refine and improve financial services for the senior care sector through enhanced financial support for a faster growth of the industry. The Opinion requires financial institutions to transform their financial services for senior care business by strengthening their capabilities, while proposing to extensively engage private capital, increase senior care reserve in the society and improve the ability to pay for senior care services. The goal is to establish an extensive, complete, secure and robust financial service system commensurate with the aging process of the Chinese population by 2025.

 

The Opinion calls for active innovation in the forms of professional financial organizations, exploration into and establishment of a department system for senior care finance, setup of specialized financial service providers in various forms, innovative loans catering to the features of senior care industry, broadening the range of security acceptable for the industry, and stronger credit support for the senior care sector. Further, it intends to facilitate qualified senior care providers to go public for funding, support senior care companies and projects of different types and at different stages in raising funds through the bond market, improve the pension system, and provide mid- to long-term low-cost funding support to these companies and projects. Besides, the document purports to continuously extend and enhance the capacity and standard of senior care financial services for residents by optimizing the outlet distribution for seniors to have better access to financial services, while actively developing differentiated financial products that offer long-term stable income and meet the needs for senior care across the life-cycle.

 

The Opinion also articulates the plan to establish a coordination mechanism for financial support for senior care industry involving the People’s Bank of China, the Ministry of Civil Affairs and financial regulators, in order to provide combined policy stimulus to the industry through better coordination and alignment between industry policies and financial policies, integrated application of multiple financial policy tools, and enhanced monitoring on the implementation and effectiveness of policies.

 

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