CHINA PRESS: Pension System Faces Challenges - Zhou Xiaochuan

China’s pension coverage faces tough challenges due to inadequate coverage for its large and aging population, Zhou Xiaochuan, Former People’s Bank of China (PBOC) governor, said in a recent speech. Speaking at the Global Wealth Management Forum, Zhou noted China’s pre-funded pension funds amounted to less than 10% of GDP compared to some countries at 50% to 100%. The issue could be addressed by reforms to the income tax system, increasing incentives for joint enterprise/employee contribution schemes, and potentially converting equity of state owned companies into pension funds.