China is set to introduce a pilot scheme aimed at encouraging people to make personal deposits to contribute to their retirement planning, reports our sister publication, International Adviser.
The programme will at first be available for a year in five cities: Hefei in the Anhui province; Guangzhou in the Guangdong province; Chengdu in the Sichuan province; Xi’an in the Shaanxi province; and Qingdao in the Shandong province, according to local newspaper China Daily.
Starting from 20 November 2022, the four state-owned banks will be responsible for the programme – namely Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China.
The cap on deposits will be set at CNY10bn (£1.2bn, $1.48bn, €1.45bn) for each bank, while the limit of the deposits will be set at CNY 500,000 per customer.
The institutions will offer three types of retirement planning products with maturities of five, 10, 15 or 20 years; and he interest rates will be a little higher than the banks’ five-year deposit rate.
The types of products to be made available were not specified.