British Pension Industry Faces Bankruptcy, Pins Hope on Chinese Investment
Yicai Global
/SOURCE : Yicai
British Pension Industry Faces Bankruptcy, Pins Hope on Chinese Investment

(CBN - Global) May 11 -- The UK government hopes to open up more elderly nursing facilities to Chinese investors. Such facilities include nursing home construction and operation in collaboration with Chinese companies, and an increased immigration quota in exchange for investments from Chinese companies.

Over one quarter of nursing homes in the UK will be forced into bankruptcy within three years as they make too little profit to repay their crippling debts. Studies show that there are 20,000 nursing homes in the UK, of which more than 5,000 are on the verge of bankruptcy.

Britain's largest elderly care service provider, Southern Cross Healthcare Group Plc, went bankrupt in 2011, five years after floating on the stock market. At its height, it operated over 700 nursing homes in the UK.

Pension Insurance Corporation Plc, the largest pension insurance company in the UK, raised GBP250 million (USD490.56 million) of financing this year, of which GBP110 million came from Chinese investment holding company Legend Holdings Corp. [HKG:3396].

Follow Yicai Global on