January 2024

China too big to ignore, but policy will dictate growth, investors say

China's growth outlook remains murky but global investors can't afford to ignore the world's second-largest economy, although factors such as domestic policies, geopolitical developments and consumer sentiment will decide its growth trajectory, investment managers said. They also argue that upcoming restrictions by the U.S. and its partners on the flow of certain technologies to China has bifurcated the world scientific community and will hurt the global economy, even as some investors outside of the West, such as the Middle East,...

China’s population: Beijing urged to build digitally inclusive society, as it seeks insights into technical skills of its elderly

China is seeking to gain more insights into the digital literacy of its elderly population as it attempts to find ways to better accommodate its rapidly ageing demographic in an increasingly intelligent society. New questions on smartphone usage for people aged 60 and above were added to a survey on population changes and the labour force conducted at the end of 2022, and published recently by the National Bureau of Statistics in the 2023 China Population and Employment Statistical Yearbook. They...

December 2023

US. Despite Concern from Lawmakers, US Pensions and Endowments Pour into China

American public pension funds and university endowments continue to invest billions in China, according to a report from Future Union, an advocacy organization. The “Rubicon Report” criticizes institutional investors and funds for financing what the organization calls adversarial states. According to data collected by Future Union, public pension funds in 43 U.S. states currently hold investments in China and Hong Kong, according to private and public databases as of June 30. Of the 74 largest pension funds, 29 have made...

The Employment Landscape of Older Migrant Workers in China’s Aging Society: The Role of City-Level and Industry Specialization

By Haobin Fan & Ting Zhang As China’s population ages, more older workers are participating in the labor market, including a significant number of older migrant workers moving to urban areas. However, surprisingly little research has been done on their destination city and employment patterns. This paper addresses this gap by investigating the impact of city-level and industry specialization on the employment prospects of older migrant workers. Using both individual- and city-level data, we find that unlike prime-age migrant workers, older migrant workers have higher...

U.S. pension funds heavily invested in China despite crackdown

U.S. proposals to clamp down on investments in China may be being undermined by continued funding from some of America's biggest institutional investors, new analysis shows. The majority of U.S. public pensions, as well certain universities and non-profit organizations, have committed funds to China and Hong Kong, including in sensitive technologies — some as recently as this year, according to a report by Future Union, a non-partisan trade organization. The 74 largest contributors have allocated more than $70 billion to companies...

Household Financial Literacy and Retirement Planning in Rural China

By Yuting Qian, Weiqiang Tan & Jingbo Wu Rural villager’s retirement is an essential issue in China. This study investigates the level of financial literacy of rural residents and its relationship with retirement planning. In-depth survey data of rural residents in the Greater Bay Area reveal that rural residents with different demographic structures have different levels of financial literacy. The empirical study finds that financial literacy is positively related to retirement planning, and this result is robust. Further research shows...

China’s Population Problem Worsens

If population issues were like steel production, China would be making all the right moves. A rise of 10% in steel production can be generated simply by a government decree. Unfortunately for China, the same top-down, party-directed steps that would generate that increase in steel is not likely to be the right approach to reversing the population decline, and might make the problem worse. The problem itself is not unique to China. Many other countries face the challenge of a...

November 2023

China’s aging population could make it ‘the world’s largest nursing home’: Economist

Some economists are worried that China’s aging population and debt-fueled, real estate–focused economic model are leading it toward “Japanification.” That’s jargon for a lengthy period of deflation, low economic growth, and weakness in the property market that can be caused by financial distress from extreme debt loads. Veteran strategist Ed Yardeni, founder and president of Yardeni Research, on Tuesday even wrote a note titled “China: The World’s Largest Nursing Home,” detailing some of his fears about the future for the world’s second-largest economy. Like...

What do we know about China’s new financial watchdog?

China's Central Financial Commission (CFC), a new regulator with Premier Li Qiang as its head, held a meeting on Monday (Nov 20) and urged stronger supervision of risks in the financial sector as Beijing accelerates efforts to become a "major financial power". The setting up of the CFC underscores how the ruling Chinese Communist Party is tightening grip on the country's $61 trillion financial sector amid a destabilising property and local government debt crisis that has weighed on the economic...

All registered monks, nuns in Xizang covered by healthcare, pension schemes: official

Southwest China's Xizang Autonomous Region is providing medical insurance, pension schemes, subsistence allowances, and accident injury insurance, and covering health check expenses for all registered monks and nuns in the region, said the head of the regional government at a press conference on Friday. This is a ground-breaking achievement in the history of Tibetan Buddhism, said Yan Jinhai, chairman of Xizang's regional government, adding that as a result, registered monks and nuns are now entitled to receive pensions for the...