China’s nursing home capacity falling despite aging population

China's getting old.

A report from the Ministry of Civil Affairs (MCA) revealed that by end-2023:

• 21.1% of the population –– nearly 300 million people – are over 60.
• 15.4% are over 65, meeting the UN definition of an "aged society."

But despite the aging population, eldercare capacity is falling (Caixin):

• In 2022, MCA reported China had 387,000 nursing homes and facilities with nearly 8.3 million beds.
• In 2023, the number of beds in eldercare facilities fell by 64,000.

That's a tiny 0.8% drop – but it speaks volumes: Nursing care is still not a growth proposition.

Some context: Folks in China retire between 50-60 years old depending on their job and gender.

• Efforts to raise the retirement age are slow-moving and won't impact current retirees.

Get smart: It will take more than an aging population to ensure the "silver economy" takes off.

• It will involve shoring up the pension system so people can afford costly care.
• But it will also include adjusting business models to China's unique cultural context, where older folks prefer to keep care at home.

What's next: Expect Beijing's push to expand home nursing services to gain traction.