As we welcome the Lunar New Year at AMP, it is a chance to reflect on the way China remains a key market for our business.
AMP has a long and proud history of sharing its knowledge and expertise in financial services with clients and partners in China and was the first Australian company to invest directly in the Chinese A-share equity market.
Our presence in China supports AMP’s international growth, which we continue to do alongside our strategic partner, China Life.
China Life is the largest insurance group in China, ranking 42nd in the Fortune 500, and has one of the largest distribution networks across China.
Through this partnership AMP has established two very successful and rapidly growing joint ventures – China Life Pension Company (CLPC) and China Life AMP Asset Management (CLAMP).
"... we are sharing our 170 years’ experience in investment, financial advice, and superannuation expertise in China."
Currently, CLPC is a market leader in China’s pension market with over 30% market share in the trustee segment for Pillar 2 enterprise annuities.
With the Chinese population aged 65-and-over expected to rise to over 340 million by 20501, there is a significant opportunity for growth.
China also recognises the importance of developing a sustainable pension system for its ageing population.
The upcoming implementation of the Occupational Pensions segment in China will see some 40 million civil servants, with compulsory 12% annual contributions, driving approximately RMB100-200 billion in annual contributions.
CLPC is focussed on playing a leading role in supporting this development with provincial pension pools across China and has also been selected for all tenders released so far.
There is also an exciting opportunity emerging for CLPC as the Chinese market adopts a pensions approach with many similarities like Australia’s superannuation system.
CLPC is well positioned to further benefit from an expansion of retail pensions in China and retirement policy reforms.
For several reasons – including improved health, longer life expectancy and a stronger desire to travel – there is a changing expectation of increased self-sufficiency in retirement.
These factors mean many adults are seeking better plan for their retirement and cannot exclusively rely on the combination of a pension and their child to support them to realise their retirement dreams.
Through the CLPC joint venture, we are sharing our 170 years’ experience in investment, financial advice, and superannuation expertise in China.
The future looks bright for CLAMP too, with increased efforts and focus to encourage the development of local capital markets.
Signs are pointing to strong growth in the asset base of local institutional investors like insurance companies and pension companies, which are looking to invest internationally.
At the same time, CLAMP is supporting retail customers in managing their savings over time.
The opportunity for growth in China remains.
Through close collaboration with our strategic partner China Life, AMP is well placed for the future.
Beng Neoh is the Managing Director, North Asia, AMP Capital
1 https://www.census.gov/content/dam/Census/library/publications/2016/demo/p95-16-1.pdf
Pictured 1st: AMP CEO Francesco De Ferrari and AMP Capital CEO Adam Tindall watch on during a traditional Lunar New Year lion dance.
Pictured 2nd: Managing Director, North Asia, AMP Capital Beng Neoh, AMP CEO Francesco De Ferrari, and AMP Capital CEO Adam Tindall join performers during a Lunar New Year celebration at our Circular Quay office.
