Chengdu, June 12, 2025 — Industrial Bank’s Chengdu branch has made financial history by launching China’s first “pension bed utilization-linked loan,” a groundbreaking initiative to boost elderly care services and drive regional silver economy growth. The Nanchong branch of the bank recently extended a ¥50 million project loan to a local senior care company in Nanchong City, Sichuan Province, marking a milestone in innovative elderly care finance.
Innovative Financing Model Targets Operational Efficiency
The loan, earmarked for the urban elderly care integration and upgrading project in Jialing District, features a dynamic “interest rate-bed utilization rate” adjustment mechanism. Under the scheme, loan rates will be tied to the occupancy rate of newly built senior care facilities. If the facility achieves predetermined bed utilization targets post-completion, the borrower will benefit from reduced interest rates, directly incentivizing improved operational performance and service quality.
Addressing Aging Population Challenges Through Collaboration
Industrial Bank Chengdu has been at the forefront of implementing national strategies to address population aging. In Nanchong, known as “China’s Fruit City,” the bank’s local branch partnered with the Jialing District Civil Affairs Bureau to assess the needs of 11 urban nursing homes. “Flexible care timings, diversified services, and vibrant community activities are why we chose this facility,” said retiree Li Huifang, reflecting growing demands for high-quality senior care.
The project aligns with the Jialing District Government’s “community-based elderly care” vision, converting idle public assets into modern senior care venues. Through collaborative efforts with provincial, municipal, and district authorities, Industrial Bank designed a financing plan that integrates infrastructure upgrades with performance-based incentives. The initiative aims to add 1,400 new beds and renovate existing facilities, enhancing capacity and service standards.
Financial Support and Local Impact
The project has secured ¥120 million in total credit from Industrial Bank, with the first-phase disbursement of ¥50 million already supporting facility renovations, equipment upgrades, and bed expansions. Local officials and industry stakeholders have praised the initiative for its dual focus on social welfare and financial innovation.
Future Directions for Elderly Care Finance
“This landmark deal demonstrates how financial innovation can address societal challenges,” said Zhang Wei, CEO of Industrial Bank Chengdu. “By linking financing costs to operational efficiency, we aim to create a sustainable model that elevates senior care standards while ensuring commercial viability.”
Looking ahead, the bank plans to deepen its elderly care finance portfolio, exploring integrated solutions that combine infrastructure funding, operational support, and technology adoption. With China’s aging population expected to exceed 300 million by 2030, such initiatives are critical to building a resilient and inclusive senior care ecosystem.
Related topics：
