Age with Purpose, Embark on a New Journey: PICC Equity Successfully Hosts Forum on Silver Economy Development

In today’s rapidly aging global landscape, the “silver economy” is emerging as a significant driver of economic growth. To explore the opportunities and challenges associated with the development of the silver economy, PICC Equity held the “Silver Economy and Elderly Care Industry Forum” on June 28, 2024. The forum brought together numerous renowned industry experts and business leaders to gain a global perspective, transcend temporal and spatial boundaries, analyze trends, and jointly identify successful strategies for investment and operations in institutional elderly care.

Distinguished guests from various fields, including Wang Yong, CEO of Shuiyin China; Dr. Marumi Shoji, President of the Japan-China Association for the Welfare of the Elderly; Chen Manyi, Director of Greater Bay Area Expansion at Jones Lang LaSalle (JLL); Ji Qiongxiao, Assistant to the President of Fosun International and Co-Director of the Health and Elderly Care Committee; and Wang Gang, Executive President of the China REITs Alliance and Chairman of Ruixin Investment, shared insights on topics such as “U.S. Experience and Chinese Practice in Financial Investment for the Development of the Elderly Care Industry,” “Development History, Typical Cases, and Cooperation Experience of Japan’s Silver Economy,” “Development of Elderly Care Real Estate in Greater Bay Area Cities and Market Opportunities for Cross-Border Elderly Care by Hong Kong Residents,” “China-U.S. Cooperation in Elderly Care and Practical Integration of Insurance with Health and Elderly Care Services,” and “International Experience and Domestic Development Trends of REITs in the Health and Elderly Care Industry.” While exploring the current status and trends of elderly care industry development across different countries and regions, the forum presented a feast of knowledge and wisdom. The main viewpoints of the speakers are summarized as follows:

From an international perspective, countries such as the United States and Japan have developed distinct models of the silver economy during their population aging processes. In the United States, ownership-based retirement communities have formed a specialized operational model covering investment, construction, and management, driven by market forces. Financial capital from insurance companies and other institutions participates through private equity funds and healthcare REITs, securing continuous and stable returns. Japan, with its Long-Term Care Insurance system at the core, has established small-scale, diversified long-term care facilities, thereby driving the development of upstream and downstream industries, including smart elderly care products, senior tourism, and re-employment. Insurance companies are gradually increasing large-scale investments in the elderly care industry through mergers and acquisitions. In Hong Kong, China, elderly care services are transitioning from traditional nursing homes to high-quality retirement apartments and cross-border elderly care within the Greater Bay Area. Domestic health and wellness enterprises, initially collaborating with foreign professional institutions, have gradually explored investment and operational models suited to their own characteristics and are actively pursuing innovative cooperation models deeply integrated with the insurance sector. Under the broader framework of elderly care finance in China, policies related to public REITs for health and wellness project assets are expected to be introduced soon, providing new channels and capitalization tools for project financing and investment, which will significantly promote the flow of financial capital into health and wellness projects.

Subsequently, PICC Equity meticulously organized a roundtable discussion themed “The Path to Success in Investing in and Operating Urban-Core Senior Living Apartments.” Roundtable participants, including Mei Xueyan, CEO of Kaijian Senior Care; Zhang Xiaoyu, Vice President of Business Development for Keppel Senior Living (Singapore); Cheng Guo, Head of the Business Development Department at CITIC Senior Care; and Gao Junsong, General Manager of Yuanli Health, engaged in in-depth discussions on topics such as “Definition and Understanding of Urban-Core Senior Living Apartments,” “Product Development and Operational Services for Urban-Core Apartments,” “Integration of Core Insurance Business with Urban-Core Apartment Operations,” and “Major Trends in the Elderly Care Service Industry.”

Drawing on their practical experience, the panelists agreed that urban-core senior living apartments represent an institutional care product better aligned with the current needs of older adults. Unlike large-scale projects such as suburban Continuing Care Retirement Communities (CCRCs), urban-core apartment projects impose higher demands on teams in terms of site selection, customer positioning, service mix, and cost control. The rigid demand among current senior care clients primarily manifests as assistance with activities of daily living and nursing care for the advanced-age population. While various institutions are solidifying their core offerings to meet these essential needs based on their respective resource endowments, they are also actively exploring service products tailored to active or independent seniors. Regarding industry development trends, the panelists expressed strong confidence in market prospects. They identified diversified cooperation with insurance capital as a future direction and emphasized that new entrants must strike a balance between hands-on involvement and patient persistence. Only by acting as “patient capital” can they hope to share in the dividends of the growing silver economy.

The forum’s uniquely curated agenda explored key issues in the niche sector of institutional elderly care from multiple perspectives, including international, historical, and innovative angles. This approach fostered mutual learning through exchange, enriched professional discourse, and resonated deeply with attendees, prompting thoughtful reflection.

The successful hosting of this Silver Economy and Elderly Care Industry Forum has not only established a platform for industry professionals to exchange ideas and learn from one another, but also injected new vitality and momentum into the development of the silver economy. This achievement underscores PICC Equity’s steadily growing industry influence and its relentless pursuit of excellence. Adhering to the investment philosophy of “research-driven, future-insightful, and change-leading,” PICC Equity will continue to pursue long-term, value-oriented, and prudent investments that withstand economic cycles. Striving to become a top-tier investment institution in the insurance private equity sector, PICC Equity is fully committed to supporting the eight strategic services of the PICC Group and making greater contributions to achieving sustainable development in an aging society.

PICC Capital Insurance Asset Management Co., Ltd. is an insurance asset management company established with the approval of the former China Banking and Insurance Regulatory Commission (CBIRC). As a specialized insurance asset management platform under the PICC Group focused on alternative investments, it serves as the primary channel for alternative investments within the PICC system. The company manages entrusted funds to conduct alternative investment businesses, including debt investment plans, equity investment plans, and asset-backed plans. It is a wholly-owned first-tier subsidiary of PICC, with cumulative assets under management exceeding RMB 330 billion.

PICC Capital Equity Investment Co., Ltd. is a wholly-owned subsidiary of PICC Capital and the sole insurance private equity fund manager under the People’s Insurance Company (Group) of China (PICC). Adhering to PICC’s Excellence Strategy, the company upholds the investment philosophy of “research-driven, future-insightful, and change-leading.” It seeks to understand innovation through in-depth research, identify value with a forward-looking perspective, and drive transformation through impactful investments. By focusing on promising new technologies, the company strives to meet people’s aspirations for a better life.