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.

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. 

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.