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Liability conundrum

The funding of China's pension system has dramatically improved in the past five years, in line with the growing wealth of the country. But will social security coffers ever catch up with 21st century population demands? And what about the ALM bugbear that plagues other 'greying' nations? By Kathleen Kearney

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China's huge population is expected to age faster than that of any other area in Asia and far outstrip the global average. In 2000, the proportion of the Chinese population over 60 years of age was about 10%, the same as the worldwide average, according to United Nations' figures. By 2030, the average in China is expected to be as high as 24.5% compared with an estimated global average of 16%.

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