Page 96 - 2025 Special Report

4.1. The underdevelopment of relevant existing differences in the systemic features, the
policies and legal framework degree of regional financial market openness, as
well as the yet-to-complete process for connectivity,
There are significant differences in the current limits the allocation of elderly care financial product
legal systems and policy provisions across the for cross-border residents, resulting in higher
GBA cities. The Chinese mainland has stringent costs. Meanwhile, social welfare resources are
regulations governing data security and privacy, yet to be fully aligned, especially with pronounced
while Hong Kong and Macau have more flexible differences in health care services, health insurance
governance frameworks. The GBA has yet to policies and payment settlement systems amongst
establish regulations or policies that can resolve the Guangdong, Hong Kong and Macau, as well the
security issues in cross-border data flow effectively. conditions for holding the policies and the benefits
When the elderly receive cross-border health care therefrom. As a satisfactory resolution of these
services, data flow barriers often result in various differences do not appear to be forthcoming, the
issues, such as repetitive inspection and testing and time and economic costs of those elderly needing
gaps in clinical information. In terms of innovations cross-border care remain high.
in elderly care finance, existing differences in the
relevant policies and regulations hinder the creation 4.3. Gaps between the supply and
and marketization of unified elderly care finance demand of elderly care services
products. In their cross-border elderly care financial
planning, the elderly confront the thorny reality of As society progresses, the demand for elderly
investment restrictions, volatility in investment care services by the aging population increases.
returns and high transaction costs — let alone The demand for elderly care services is no longer
the lack of a proper rights protection mechanism. confined to the traditional service model. New
Compliance requirements also prevent the proper expectations have arisen concerning multi-
matching of resources in elderly care services, dimensional elderly care services, including the
impacting the quality of and trust in cross-border handling of daily life needs, health care facilitation,
elderly care services. There is an urgent need for cultural and entertainment activities and spiritual
the governments of the GBA cities to enhance policy needs. Currently, the elderly care services market
coordination and integrate laws, and establish a faces a significant gap between a rapidly rising
sound system of legal protection to successfully demand and a short supply, failing to meet the
develop the cross-border elderly care industry. expectations for diversified and high-quality
services. Therefore, the governments of the GBA
4.2. The individual pension system cities must enhance overall planning, coordination
awaits further improvements and resources sharing for elderly care services.
Continuous upgrades and development of elderly
Despite the GBA has been leading the nation care systems are needed to cater better to the
in developing elderly care finance, the GBA faces evolving needs.
issues of underdevelopment and unevenness. The
third pillar of the pension system is still in its nascent 4.4. Uneven allocation of elderly
stage, with no comprehensive promotion of the care resources
individual pension system. Few people recognize
the need for elderly care planning and existing Each of the GBA cities has its own developmental
financial products tend to be complex with low rates focus and pace in developing foundational facilities
of return, as such dampening market interests. The and the elderly care services industry. This has led
elderly care financial management products in the to uneven allocat ion of elderly care resources.
market are still in its initial stage, dominated by Hong Kong and Macau have internationally
traditional financial management by the banks and recognized health care resources, techniques
the annuities offered by insurers. There is a severe and expertise but face consistent shortages in
shortage in the supply of innovative and integrated the availability of residential care for the elderly.
elderly care financial products to meet the diverse Limited land resources in Hong Kong and Macau
needs of elderly care investments. Additionally, severely restrict the expansion of elderly care

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