"Social security funds should be invested in the capital market to maintain and increase value."

China has numerous local systems, many of them paying pensions out of current contributions, and a number of experimental plans which have so struggled to produce a model which could be replicated across the country.

The central government established the National Social Security Fund in 2000 as a back-up for future liabilities but is still battling to settle how money should be paid into it.

The absence of a pension system and healthy insurance continues to drive a high savings rate in China, which in turn depresses consumption.

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