​China supports old-age service industry via PPP model

The Ministry of Finance, the Ministry of Civil Affairs and the Ministry of Human Resources and Social Security have jointly issued a document on promoting supply-side structural reforms of the old-age service industry through Public-Private-Partnership (PPP) model, xinhua-run www.cnstock.com reported.  

According to the document, it aims at accelerating the development of China’s old-age service industry through forming a multi-level, multi-channel and diversified old-age services market.

The document specifies that private capital should be encouraged to invest into old-age services industry and improve middle-level old-age services through the PPP model.

The document encourages the public to adopt the PPP model for converting unoccupied factories, commercial facilities and other available resources, especially stocks of real estate that are hard to lease, into old-age care institutions. The document also supports the government to hand over state-run old-age services to the private sector through PPP mode for making investments, carrying out development or operations, thereby resulting in a unified operation of the services.

At the same time, it encourages cooperation between old-age care institutions and medical and healthcare agencies, to build an old-age service chain that "based on healthcare, focused on old-age services and supported by medical treatment”. With elderly care as the main theme, it also plans to build new kinds of old-age services by integrating healthcare, sports, fitness, medical intervention, education, culture, entertainment, the Internet and other modern service industries.

Ye Jitao, chairman with Honker Consulting said that the policies were not only conducive to the development of old-age services, but also favorable for decreasing real estate stocks and improving the efficiency of idle assets.
It is worth noting that the central government has encouraged establishing guiding funds for old-age service industry to attract private capitals to be involved in the industry. Meanwhile, old-age service projects those are in urgent need and with bright prospect will be supported by central infrastructural investments.