As China accelerates its response to demographic shifts, a wave of national and local financial policies is reshaping the silver economy—unlocking new opportunities for domestic and international financial institutions, investors, and aging-care operators. From targeted credit support to lifecycle financial services, policymakers are converging on a shared goal: mobilizing capital across the full aging-care value chain.

Recent measures—spanning the central bank to municipal governments—signal a growing commitment to elderly-focused finance as China braces for a steep demographic transition. Official estimates suggest that by 2035, China’s population aged 60 and above will surpass 400 million, giving rise to a projected RMB 30 trillion (USD 4.1 trillion) silver economy.

Coordinated Policy Push from Beijing to the Local Level

In March, the National Financial Regulatory Administration (NFRA) released the Implementation Plan for High-Quality Development of Pension Finance in the Banking and Insurance Sectors. The document directs banks to expand credit supply in aging-related industries and adopt more flexible lending models—including revolving credit, loans with periodic reviews, and installment-based repayments. It also encourages the use of government-backed guarantee schemes to de-risk financing in priority areas such as senior-friendly infrastructure, smart eldercare technologies, and adaptive reuse of idle assets for aged care.

On May 9, the People's Bank of China (PBOC) further bolstered this momentum by launching a special re-lending program for service consumption and elderly care, aimed at incentivizing financial institutions to scale up sector-specific credit offerings.

Local governments have followed suit. In July, the Shanghai branch of the PBOC joined nine other agencies in issuing a Work Plan to Support the High-Quality Development of Silver Economy Through Pension Finance. It emphasizes diversified funding channels and directs banks to increase credit allocation to silver economy clusters.

That same month, the Dongguan municipal government unveiled its own action plan, calling for inclusive financial products tailored to eldercare and childcare institutions. The plan also encourages full-lifecycle financial services for tech-enabled enterprises serving the aging population.

Earlier in May, Guangzhou authorities issued a similar framework, advocating targeted credit support for age-friendly products and infrastructure, as well as for innovation in smart eldercare devices.

Major Banks Move to Implement and Scale

China Post Savings Bank (PSBC) is among the first movers translating policy into scale. Its Zhejiang branch recently led a syndicated loan of RMB 4.972 billion (USD 680 million) for a comprehensive eldercare development project in Wenzhou. The project, now the bank’s largest elderly care financing case to date, includes a hospital specializing in geriatric care, senior apartments, a service hub, and a demonstration center integrating medical and eldercare services. The project will deliver over 8,000 eldercare beds.

Other regional PSBC branches—including those in Jiangsu, Anhui, and Hubei—are also stepping up. Their recent deals span retrofitting existing facilities, unlocking idle assets, and developing integrated communities, building a multi-tiered, diversified, and high-quality eldercare service system.

Financial Sector Positioning for the Long Game

With regulatory clarity and policy tailwinds, Chinese banks are vying to carve out long-term positions in an emerging growth frontier. Analysts highlight that the real differentiator lies in two capabilities: owning customer acquisition channels and possessing the technical infrastructure to adapt services to an aging demographic.

Guo Yiping, an analyst with Xiangcai Securities, noted that “incremental credit growth will increasingly target the silver economy value chain. Wealth management is also set to deepen, particularly through the expansion of China’s third-pillar pension system.” For financial institutions, this opens a path not only to asset origination but also to long-term AUM (assets under management) growth.

Implications for Global Stakeholders

For global banks, asset managers, and eldercare operators, China’s evolving silver economy offers a dual proposition: partnership and presence. Financial institutions with experience in long-term care insurance, community-based aging solutions, or pension wealth management may find fertile ground for collaboration—particularly if they can localize solutions within China’s regulatory frameworks.

Meanwhile, legal, accounting, and risk advisory firms will see rising demand from clients navigating this space, including cross-border investors eyeing public-private partnerships, greenfield investments in senior housing, or fintech-driven retirement services.

Moreover, China's policy-led framework is creating a replicable model that may resonate across other aging economies in Asia and beyond. As regulatory and fiscal support matures, China’s silver economy is evolving from a demographic concern into a strategically coordinated sector—one with clear capital pathways and institutional incentives.