AsianInvestor’s regulatory roundup, Feb 21

China: Pensions unification proposed
China’s cabinet, the State Council, announced reform plans for its pensions system on February 7 by combining the separate provisions for urban and rural residents into a unified system. This will see pension funds diverted into one pool from various levels of society, including individuals, social institutions and governments. The proportion of government contributions are expected to be more heavily weighted to people from the more impoverished central and western regions. Under the plan it appears a pensioner from an Eastern province, for example, would receive 50% of a full central government subsidy, while those from the central and western provinces get a full subsidy. It is hoped this will improve social security and facilitate a better standard of living, helping to dampen population migration from rural to urban centres. A stronger safety net is also expected to help increase local consumption and encourage entrepreneurship.