China’s Ministry of Finance has transferred a 6.8% stake in the People’s Insurance Company of China (PICC) to the state pension fund, part of a pilot program to transfer state assets to make up for the country’s pension shortfall amid an ageing population and debt pressure, reported the South China Morning Post.
The Ministry of Finance transferred 2.989 billion PICC class A shares, valued at $4.74 billion according to the National Council for Social Security Fund. The transfer reduced the ministry’s stake in PICC to 60.8%.
Local government authorities are facing increasing pressure to meet their pension obligations as the nation’s population grows older, Finance Minister Liu Kun said last week in Beijing. The government faces a shortfall of about RMB 56.6 trillion ($8.4 trillion) in the basic pension scheme of urban workers between 2018 and 2050.