Trial of reverse mortgages gets green light

The China Insurance Regulatory Commission said on Monday that it approved a two-year pilot program involving reverse mortgages, part of the government's drive to improve the situation of the country's rising number of retirees.

Reverse mortgages, also known as home equity conversion mortgages, are common in developed countries but new in China. They are extended to older citizens who use their homes as collateral in return for regular payments from insurers.

According to the CIRC, this type of insurance will help broaden financial resources for the elderly and expand the retirement services offered by insurance companies.