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<p class="msonormal"><font face="Arial" size="2"><span>The Chinese Labor Ministry has granted operating licenses to 15 financial services firms to manage the country´s voluntary corporate pension system. Of the 15 management license holders, 4 are local fund management joint ventures of foreign enterprises. These 4 companies-ING, Fortis, Deutsche Bank, and Bank of Montreal-will be the first foreign fund managers to enter the corporate pension market in China. Other recipients of management licenses include large insurance companies, who have already been providing a pension-type product called group insurance to companies for several years. The Labor Ministry also issued 22 back office licenses for pension trustees, administrators, and custodians.</span></font></p>
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<p class="msonormal"><font face="Arial" size="2"><span>These companies have been given the opportunity to make a play in what some analysts say could be one of the world´s largest corporate pension markets. A study conducted by OECD and Allianz Global Investors predicts that corporate pension assets will reach over $100 billion in the next decade. China´s corporate pension system was implemented in 1997 in response to the country´s approaching pension crisis, and currently has over $6 billion in assets. </span></font></p>
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<p class="msonormal"><font face="Arial" size="2"><span>One main obstacle to a successful corporate pension scheme is the absence of a pension tax law. Companies currently do not receive any tax breaks for payments they make to the voluntary corporate pension scheme.</span></font></p>
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