Spanish banking group BBVA and Chinese financial services company CITIC Bank are reportedly planning to team up to move into China's corporate pension fund market, media reports have revealed.
We have been concerned with the development of China pensions, especially the corporate annuities market, and we are looking forward to participating in this market with CITIC Bank, said Vicente Rodero, BBVA general manager for Latin America, cited in ABC Money.
According to Forbes, the market is expected to grow rapidly, and, in 2006, corporate annuities for worker retirement funds reached $11.8 billion. By 2030, the market is estimated to hit $1.8 trillion, Forbes said, citing World Bank figures.
Forbes also revealed that Chinese regulators are currently drafting out proposals that aim to encourage Chinese enterprises to join private pension funds. They are also looking into possible changes in the country’s current legislation to allow greater flexibility for financial institutions to help develop the market.