Foreign investment in Chinas elderly care

An aging population remains a major concern for China. But while it’s a challenge for the country, it means opportunities for businesses. China first put forward a policy in 2012 inviting foreign companies to invest in its elderly care industry, and since then, some have made bold attempts to fill the niche. In this China View, we see one company’s foray into the industry.

Shanghai kaijin international elderly care center officially opened in january the center is the first pension agency in china sponsored by foreign capital us-based emeritus senior living est which is also the largest elderly care service agency in america in addition to basic services the center also provides medical services rehabilitation psychological counseling

And entertainment but the costs here are significantly higher than public facilities we provide full levels of care that are based on our professional rating system the prices also vary but basically it’s about eight to twelve thousand even per month china has about one hundred and seventy eight million seniors accounting for nearly 14% of the total population and

The number is expected to rise reaching over 400 million in 2050 the difficulty for seniors in gaining admittance to public nursing homes has become a major problem in most big cities according to one nursing home in shanghai there are already more than 7,000 people waiting for one of its 1,100 beds that translates into a potential 10-year wait hoping to alleviate

Such circumstances at the ministry of civil affairs invited private and foreign investors into the elderly care industry who is 90 years old and a resident at the chi gem center she says she previously tried several publicly funded nursing homes but was unable to find a satisfactory one sometimes it was because of the medical circumstances i wanted to find a nursing

Home with the doctors in nursing care but there are few homes with all around services like this one so i decided to stay here compared to traditional nursing homes in china a center pays more attention to residents lifestyle and psychological conditions the center believes it’s equally important for seniors to speak both physically and mentally healthy i think

Airily people deserve to have a meaningful life in their later years not just days eating and sleeping inside is point out that china’s pension industry lags far behind even more considering the vast number of elderly that continues to rise rapidly traditional nursing homes here mainly focus on just the basics which hardly meets the diversified demands of modern

Times experts say allowing foreign businesses to invest in china’s elderly care industry will not only provide capital but also introduce more advanced concepts and experiences and this will help to improve the entire industry novelists many families in elderly people have accepted the idea of spending their golden years in a nursing home but most of nursing

Homes especially those publicly funded ones in small size to private ones remain in low-level development however quite a number of seniors in china’s larger cities want high-end services both in terms of manacle facilities in healthcare so there is a large market demand to fill the health care industry sees bright prospects regarding china’s enlarging elderly

Population but so far many advanced nursing centers have not yet made the great profits they expected chi-chan is no exception the center currently has only four residents but his financial backers say they’re prepared to enjoy as of now the traditional concept of home based care for the aged it still prevails and the majority spend their twilight years at home

Kai gen believes that the market needs more time to mature and the pension industry will finally yield strong profits in fact increasing foreign capital is attempting to take a part in china’s aging industry but many have been kept out due to bureaucratic restrictions but thanks to the experimental policy introduced by shanghai pudong district kai dan has managed

To set up shop insiders say that foreign companies wanting to establish themselves in china not only official approval but also policy support on property and taxes there’s no specific lane that reserved for elderly care in china so we have to compete with commercial land which is tough for us because a business mode and capital flow of patient agencies cannot be

As competitive as commercial properties we hope that the government can consider providing policies to support and encourage foreign capital

Transcribed from video
Foreign investment in China's elderly care By New China TV