China’s personal pension wealth management market is accelerating, with the number of approved products reaching 35 following the recent addition of two new offerings from BOC Wealth Management. Fixed-income products dominate the market, accounting for over 80% of available options, according to data released by China Wealth Management Network on May 27.
Market Composition and Product Features
The newly added products include:
BOC Wealth “Fu” Fixed Income Enhanced 368-day product (Risk Level 2)
BOC Wealth “Ji” Fixed Income Growth 3-year product (Risk Level 3)
These open-end net value products incorporate pension-specific design elements focusing on long-term capital preservation while managing risk. Their flexible structures allow investors to subscribe or redeem based on individual liquidity needs.
Market Drivers and Policy Support
The expansion comes amid China’s aging population trend and accelerated development of the third pension pillar. Six wealth management companies have launched products through 21 commercial bank distribution channels since the first batch debuted in February 2023.
Financial policy expert Zhou Yiqin identifies two key growth drivers:
Strong policy support including nationwide promotion and expanded product scope
Active marketing by banks and distribution channels
Performance and Investor Preferences
Among the 35 products, 29 are fixed-income while only 6 are hybrid. Notably, all except the two newest products maintain net values above 1. Analysts attribute the fixed-income dominance to alignment with pension investors’ preference for stable, long-term growth within secure parameters.
Building a Diversified Product Ecosystem
With China’s aging population creating growing demand, the market presents significant opportunities. Recent policy documents, including the State Council’s March 2025 guidance on financial services for aging populations, emphasize developing specialized pension products with varying risk profiles and terms.
Dong Ximiao, Chief Researcher at Zhaolian Finance, highlights wealth managers’ competitive advantages:
- Extensive retail networks through parent banks
- Proven asset allocation capabilities
- Experience in bond and non-standard investments
Challenges and Future Development
Despite growth, challenges remain:
| Challenge | Potential Solution |
|---|---|
| Limited product variety | Expand participating wealth managers |
| Product homogenization | Encourage innovation and differentiation |
| Competition with mutual funds | Develop unique value propositions |
Zhou suggests allowing more wealth managers to participate could stimulate competition and innovation, helping the market reach its full potential in supporting China’s pension system reform.
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