Zhanlian Feng: An Aging China Provides Nascent Investment Window For Senior Care Sector

Summary: In this episode of China Money Podcast, guest Dr. Zhanlian Feng, senior research analyst in the Aging, Disability and Long-Term Care Program at RTI International, talks with our host Nina Xiang about the enormous demand in China's senior care industry, its regulatory environment and the lucrative business opportunities it presents. Read an excerpt below, but be sure to listen to the full interview in audio and subscribe to the podcast in the iTunes store. Q: In 2010, there were 119 million Chinese aged 65 and older, and this number is projected to more than triple to 382 million by 2040. The demand for senior care in China is obviously enormous. What is the situation of senior care supply? A: You are right. Some of the statistics in China are alarming. There are estimated 36 million elderly Chinese who need living assistance. It's also estimated that there are about 9 million Chinese with dementia. The real number might be higher as the diagnosis is difficult. In 2010, there are estimated 114 million elderly Chinese with diabetes. These are all chronic diseases that need long-term care. In addition, among all the families with an elderly person, more than half are empty nesters. In some cities, it is as high as 60% to 70%. But the supply of senior care is inadequate. Though there is no official number, but it is estimated that there are 40,000 residential care facilities in China. There are about 3.2 million beds in total, and around 2 million elders live in these facilities. This translates into a ratio of less than 2% of seniors who live in senior care facilities as a percentage of total senior population, much lower than 5% or 6% in much advanced economies. ........ Zhanlian Feng is senior research analyst in the Aging, Disability and Long-Term Care Program at RTI International. He is also an adjunct assistant professor of health services, policy and practice at Brown University. His research focuses on the disparities in U.S. long-term care and the growth of institutional elder care in China.