CCAD successfully conducted market research in China, and the future cooperation is promising

Leading by the CEO, Qiang Fu, the CCAD team went to China for the purpose of market research from August 18 to August 23, 2016.

During the conference with Chief of Civil Affairs Bureau of Cheng Du City, Qing Zhan, Deputy Chief, Yong Chang Liu, and other officers in the Bureau, CCAD consultants Mike Hubbert and Sunny Wu delivered presentations on programs and services for seniors in Ontario, Canada. Chief Zhan also introduced the policies and current developments of senior care industry in Cheng Du City and arranged CCAD to conduct field market research on senior homes, senior community day care centers, and senior hospital-home (a facility that combines both hospital resources and senior home resources).


CCAD also conducted field market research at Cuncaochunhui Home for the Aged and Kang Meng Yuan Senior Apartment in Beijing, and had meetings with Xiao Long Wang, chairman of Cuncaochunhio Home for the Aged, and the executive director at Kang Meng Yuan. During the meeting with chairman Xiao Long Wang, we had an in-depth discussion on the challenges of senior home operators in China, the current operation model and situation, and the prospects of senior care industry in China.


There are many senior homes, senior community day care centers, and senior hospital-homes in China. However, the number of the facilities is insufficient to meet the demand for the seniors who are in need of care services.  According to our analysis after the market research, environment and services in the senior homes and other facilities in China have a great room for improvement. Other than importing more advanced equipment and renovating the homes to enhance securities of the seniors, the senior homes in China can also learn from the thoughtful services and the advanced memory care facilities in Canada.

The result of the market research is very promising. CCAD will continue to pay close attention to the senior care industry in China in order to introduce suitable skills and services to China. CCAD is excited to contribute our effort assist the senior in China to live happily.

The Representative of Canada-China Ageing Industry Development visit Civil Affairs Bureau of Cheng Du City

In the morning of June 22, 2016, the Chairman of Canada-China Ageing Industry Development (CCAD), Chang Zhong Xu, and his coworkers went to Civil Affairs Bureau of Cheng Du City to Visit. They had a very effective conference.

The representatives of CCAD introduced their background, team, and developmental goals to the leaders of Civil Affairs Bureau of Cheng Du City. The chief of Civil Affairs Bureau of Cheng Du City, Qing Zhan, and the deputy chief, Yong Chang Liu, have also provided the detailed explanation of the current developments and issues in the ageing industry in Cheng Du City during the conference. They had in-depth discussions about introducing the advanced ageing industrial planning, management concepts, service and technologies from Canada. In addition, they had also discussed and reached a consensus about improving the development of ageing industry in Cheng Du and the feasibility.

The leaders of Cheng Du City expressed that they highly welcome CCAD to set their food in Cheng Du. They are excited to learn from advanced Canadian ageing industry and introduce the development concepts and management style to Cheng Du City. They look forward to accelerating the development and improving the overall industry. CCAD’s team will arrange the experts and management team to enter Cheng Du City immediately to conduct market research and analyze the feasibility of the project.

The trip to Cheng Du City facilitated the leader’s understanding of CCAD, and it also established a great foundation for the project of introducing Canadian ageing industry to China.

China healthcare: New regulations enable private investment in senior care business

In 2012, China’s population aged 60 and over was 194 million. By 2025, this population is expected to reach 300 million. In response to growing urbanization and economic changes, the question of providing adequate senior care is posing a serious challenge to this populous country. In recent years, the Chinese government has introduced a number of reforms to address the shortage of healthcare facilities. Starting in 2013, the Chinese government issued a series of policies and regulations aiming to encourage private and foreign investment to invest in this sector. In the most recent announcement on 24 November 2014, the Ministry of Commerce (MOFCOM) and the Ministry of Civil Affairs (MCA) jointly issued the Circular on Various Issues on Foreign Investment in For-profit Senior Care Facilities (the Circular) providing detailed guidelines for foreign investment in senior care business in China.

It is important to note that the Circular only covers the for-profit part of foreign investment in the senior-care business in China. The non-profit part will continue to be governed by the Measures on the Establishment of Senior Care Facilities and other related regulations issued by MCA and other government agencies.

Some of the provisions in the Circular are not new but derive from previous policy statements, rules and briefings. Below are some developments and changes worth highlighting.

Relevant authorities for approval and registration

Foreign investment in for-profit senior care business is subject to approval by MOFCOM, licensing by MCA and registration with the State Administration of Industry and Commerce (SAIC)1. However, the sequence of these requirements is not always clear in practice and varies across different locations. The Circular specifies that the foreign investor will first need to apply for approval from the provincial level of MOFCOM at the place of the senior care facility followed by registration of the company with the local branch of SAIC. After the business license is issued by SAIC, the foreign invested senior care enterprise must apply for a Senior Care Facility Establishment Permit (SCFE Permit) from MCA at the municipal or district level. Before the SCFE Permit is issued, the foreign invested senior care enterprise cannot commence operation by charging any fees or admitting any senior person into its facility.

If the foreign invested senior care facility intends to provide medical services as part of or in addition to senior care service, it will also need to apply for a Medical Institution License separately.

Streamlining of the establishment procedure

The Circular streamlines the establishment procedure by setting out the maximum time frame (20 days after acceptance of application) that MOFCOM can use to decide whether or not to approve the application. The Circular also reduces the documentation required for the application. The requisite documents include the following:

· an application report;

· a situation statement (venue, security, and medical/care measures);

· joint venture contract and/or articles of association;

· directors and their appointment letters;

· name reservation evidence2; and

· a statement and evidence of the relevant experience of the investor or the ultimate controller or the proposed management team of the enterprise.

In addition to the above documentation, it is also worth noting that the Circular leaves in a catch-all provision authorizing the authorities to ask for other documents required under law, rules and administrative regulations. The level of detail required by the authorities for each documentation remains to be tested.

Encouragement for franchises

After the foreign invested senior care enterprise is established, the foreign investor is allowed by the Circular to make other senior care related investments in China. Foreign investors are also encouraged to scale up the senior care investment, develop franchises and cultivate quality senior care brands in China. Foreign investors are also allowed to participate in privatization and restructuring of public senior care facilities.

Prohibition from Real Estate projects

The Circular addresses some of the loopholes in the senior care system. In the past, private and foreign investors have relied on the provision of senior care as a way to develop real estate projects. To ensure that the approved senior care investment is restricted to its intended purpose, the Circular specifically sets out restrictions through prohibiting local government from approving any subsequent change in land usage or floor space ratio granted. Foreign investors are also prohibited from carrying out “reverse mortgage” businesses in China which are typically targeted at senior homeowners.

Administrative charges and tax benefits

Under the Circular, foreign invested senior care facilities will enjoy the same preferential treatment granted to domestic private senior care facilities, including exemption from or reduction of taxes and administrative charges. However, the Circular does not elaborate the details of such preferential treatment. The Ministry of Finance and the National Development and Reform Commission recently issued a joint notice (Cai Shui 2014 No. 77) to specify how senior care facilities can enjoy the reduction of administrative fees.

The tax benefits awarded to foreign investors remain unclear. The Chinese Government has recently launched a campaign to investigate tax benefits granted by local governments on a discretionary basis, in particular, targeting tax benefits which have been approved without express authorization of law or from the State Council.

This overhaul in the tax scheme will mean that there may be less flexibility in tax benefits. However, it is anticipated that tax benefits made available to foreign invested senior care facilities will have either express legal basis or written endorsement from the State Council.

Price control?

One big issue unanswered by the Circular is whether the services provided by foreign invested senior care businesses will be subject to price control by the Chinese Government. This issue was touched on in the Administration Measures of Senior Care Facilities promulgated by MCA in 2013 but no further details have been given in the Circular.

The Circular is a welcome move for foreign investors in the senior care industry. It is anticipated that the Chinese government will introduce further clarification and implementation measures in the coming year. Compared to foreign investment in medical institutions in China which are subject to more regulatory restrictions3, foreign investors may find it easier to establish a wholly owned senior care institution in China and apply their brand, expertise and know-how as they see appropriate. For now, domestic firms are not yet sophisticated enough to pose serious competition in this nascent industry. In light of this development, we are likely to see a boom of foreign investment in the China’s senior care sector from international companies and private equity funds and the introduction of more international healthcare brands in the market.


1. Non-profit foreign invested senior care facility must be registered with MCA.

2. Proposed name of the institution, which has to be registered with the local SAIC

3. For example, in most places in China foreign investors are not allowed to set up wholly foreign owned medical institutions.

Senior services expo opens in Beijing

The fifth China International Senior Service Expo opened in Beijing on Tuesday.

The three-day expo gathered representatives from more than 200 professional institutes in 10 countries and regions.

China has experienced a rapid increase in its aging population. By 2015, China had 222 million people above 60, about 16 percent of the total population.

“Older people’s demands for senior service have increased sharply, and elderly care has become a major strategic issue to affect the national economy and people’s livelihood,” said Gao Xiaobing, vice minister of civil affairs.

“As the pace of population aging in China is much greater than has been the case in the past and for many countries, the necessary adaptations will have to be undertaken quickly,” said Gregory Ross Shaw, director of international and corporate relations of the International Federation on Aging, adding that the trends demand innovative technology and products in the industry.

China’s top leaders expressed their concerns about aging issues.

President Xi Jinping said in March that coping with an aging population concerns China’s overall development and the interests of hundreds of millions of people.

Hosted by Ministry of Civil Affairs of the People’s Republic of China, China National Committee on Aging, organized by China Association of Social Welfare and Senior Service, Beijing Municipal Civil Affairs Bureau and Beijing Municipal Committee On Aging, China International Senior Services Expo (CISSE) is the most the most authoritative national expo focusing on senior care, with the theme of “Better care for the elderly, better life for the world”.