Financial institutions ramp up product offerings following expansion of private pension scheme

Chinese banks and insurance companies are stepping up efforts to launch new investment products and enhance related services to accommodate the growing demand for retirement planning following the country's expansion of the private pension program.

Starting December 15, China officially expanded its private pension scheme from 36 pilot cities and regions to the entire country.

As a supplementary pension insurance, this scheme is voluntary for individuals and operated in a market-oriented manner through support from national policies, according to a government notice. The notice encourages financial institutions to develop products that cater to long-term pension needs, such as personal pension savings and low-volatility or absolute return funds.

The China Securities Regulatory Commission (CSRC) has included the first batch of 85 equity index funds in the catalog of approved investment products for private pensions.

"We are planning to launch 27 [index fund] products on Monday, with that number increasing to 57 by next week. Our goal is to introduce eligible investment products under the private pension scheme as quickly and extensively as possible," said Zhang Xiaojing, senior manager of personal digital finance at Bank of China.

"Financial institutions including insurance companies will pay more attention to the diversified pension financial needs of residents throughout their life cycles. They will create a differentiated, diversified product system, especially expanding services for workers in flexible employment and emerging sectors," Wang Jing, director of Market and Channel Department at Guomin Pension, a firm established in 2022 under government guidance to support China's response to the enlargement of the country's aging population.

Meanwhile, the notice calls on financial institutions to enhance their service levels. Commercial banks are now required to provide more personalized services for participants changing their pension account bank or receiving their private pensions.

"We have developed a one-stop service system covering account opening, deposits, investments, asset growth, and withdrawals. We were among the first to launch a full range of investment products, including deposit funds, insurance, and other wealth management options. In addition, we introduced innovative services such as a tax-saving calculator, pension planning, and asset diagnosis for better asset allocation," said Jin Hua, deputy general manager of the Personal Financial Services Department at Industrial and Commercial Bank of China (ICBC).

Analysts said the nationwide roll-out of the private pension system will spur more innovation in financial products and services.

"The expansion of the private pension scheme will create more opportunities for financial institutions in terms of account opening and product sales, stimulating further innovation in products and services. Generally, for investors nearing retirement, stable options such as deposits and treasury bonds are recommended, while younger investors are advised to allocate more assets to finance products such as funds," said Dong Ximiao, chief researcher at Merchants Union Consumer Finance Company (Zhaolian Finance).

Financial institutions ramp up product offerings following expansion of private pension scheme

Switzerland, known for its pristine lakes and rich tradition of fishing, is facing a significant challenge of plunging fish stocks that could threaten the livelihood of many in the fisheries industry.

In recent years, local fishermen have seen their catches decline drastically, with about 90 percent of the fish consumed in the country now being imported. This shift reflects broader environmental changes impacting Swiss fisheries, and the difficulties local fishermen are enduring are becoming more evident each year.

At seven in the morning, as the first light of dawn begins to break, a handful of fishermen at a dock in Geneva prepare to head out to the lake to check the nets they set the previous day. As the long nets were hauled from the water, the catch of perch was relatively small, but the fishermen were still satisfied, especially since they managed to net two large pike, which would fetch a good price.

Francois Liani, a fisherman of 30 years, said 2024 has been the worst year for fishing with the lowest amount of catch.

"I have never seen anything like this in over 30 years. That's right, 2024 is the worst year in the past 30 years," he said.

Fifty years ago, there were more than 800 professional fishermen in Switzerland. Today, that number has dropped to fewer than 90.

"There are many reasons, but one of the most important reasons is global warming -- it is one of the biggest problems. We have also new mussels that come from the Black Sea on the Eastern Europe that came about five, seven years ago. They have a large impact on the food availability for the fishes," said Maxime Prevedello, communication officer for the French-speaking region of the Swiss Fishing Federation (SFV).

As a result, the growth rate of fish has slowed significantly. In 2012, 2013, and 2014, a professional fisherman was able to catch around 1,000 tons of fish annually. Today, that number has dropped to just around 100 tons -- a mere one-tenth of what it used to be, according to Prevedello.

In the summer of 2024, Switzerland once again endured high temperatures. Native fish species such as perch, grayling, and the Alpine char, which have adapted to cold water, have been particularly affected. According to Switzerland's environmental authorities, 58 percent of the country's native fish species are now classified as endangered.

Swiss fishermen face growing struggle as local fish stocks plunge