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Xinhua: The Chinese Pension Fund Saw a Deficit in Some Regions

Xinhua recently reported that the Chinese Ministry of Human Resources and Social Security revealed that, based on its January to May statistics, the national pension fund saw a deficit in some regions. In Northeastern China, where most of the old industrial bases are located, the pension fund income is lagging behind its expenditures. Northeastern China has a much bigger retirement population, with fewer people paying into the pension accounts. The Ministry’s statistics also showed a significant imbalance among regions. This is a reflection of uneven economic development trends. The data demonstrated a clear structural difference between Eastern China and Midwestern China. Eastern China contributed a much bigger surplus to the overall pension fund. In order to ensure a healthy balance in the fund, the Ministry is planning to extend participation to all citizens, increase the government’s contribution to the fund, expand the scope of the market in which the pension fund can invest, and include company contributions as an income source for the fund.

Source: Xinhua, June 23, 2017