MNI China Press Digest Aug 20: Pensions, Aviation, Bonds

Highlights from Chinese press reports on Wednesday:

• China has broadened access to its private pension program, a scheme initially piloted in 2022 and rolled out nationwide at the end of 2024, the Ministry of Human Resources and Social Security announced. According to the notice, an individual, their spouse, or their underage children that have incurred medical expenses within the past 12 months which, after deducting reimbursements from public medical insurance, can access the pension fund if the cost exceeds the previous year’s per capita disposable income of their province. Withdrawals are also permitted for individuals who have received unemployment insurance for up to 12 months within a two-year period, as well as for those currently receiving minimum subsistence allowances. Previously, private pension withdrawals were restricted to cases where participants reached statutory retirement age, lost the ability to work, or emigrated to settle abroad.
• China’s civil aviation sector posted record traffic in July, with domestic airlines carrying 64.7 million passengers and international routes handling 7 million, up 2.7% and 15.7% y/y respectively, according to data from the Civil Aviation Administration. Cargo and mail volumes rose 15.3% y/y to 867,000 tonnes, boosted by traders frontloading shipments during the U.S.-China trade truce period. Passenger growth was driven by lower fares, said Lin Zhijie, an expert at a civil aviation think tank, who cautioned that consumer confidence remains weak and high-speed rail is increasingly diverting demand.
• Recent official provincial reports have flagged recurring issues in the use of special bonds, including overstated project scale and returns, idle funds and rising repayment risks, Yicai reported. The audits cited monitoring loopholes that left data inaccurate or incomplete, with some funds misappropriated. Luo Zhiheng, chief economist at Yuekai Securities, said local governments’ project management and oversight capacity has lagged behind the rapid expansion of special bond issuance, contributing to the problems.