State-owned enterprises helping bail out social security fund

Over the past two years, the State has transferred 1.68 trillion yuan ($260 billion) from 93 State-owned enterprises and financial agencies to the social security fund, the Ministry of Finance said on Wednesday.

The outbreak of the novel coronavirus has reduced the social security fund's income. Therefore, supplementing it with capital from State-owned enterprises and financial agencies is a timely move to guarantee the sustainability of the fund that is of vital importance to social stability.

The State-owned enterprises are legally bound to fill in the financing gaps of the fund. The Chinese society is aging at a fast rate. It is estimated that those above the age of 65 will account for 14 percent of the country's overall population next year; by 2050, China could have 500 million people aged over 60.