China's aging population fuels 'silver economy' boom, but profits can prove elusive

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Many older Chinese are looking beyond traditional care homes, worried about abandonment and quality issues

HONG KONG — Every Wednesday, retiree Zhang Zhili travels an hour by bus to an education center, drawn by the pulsing rhythms of the African drum she plays there in a classroom filled with fellow retirees whose hands move in unison, every beat lifting her spirits.

Zhang, 71, has found joy and new friends at the “elderly university” in Beijing. Besides African drums, the former primary school teacher joins social dance classes, paying about 2,000 yuan ($280) for two courses this semester. Seeing herself standing tall in dance class boosts her confidence. After class, she hangs out with her friends.

“When we get old, what do we need?" she said. “To love ourselves.”

Many older Chinese are looking beyond traditional nursing homes, afraid of abandonment by their families and quality issues. That's driving a boom in universities, home care services, and communities catering to older adults. Though some providers struggle to turn a profit, they persist because they see promise in the growing market.

China has a rapidly aging population. Last year, about 297 million people were aged 60 or above, over one-fifth of the population. By 2035, this number is forecast to exceed 400 million, or over 30% of all Chinese.

That's fueling growth in services and products aimed at older adults in what Beijing calls the silver economy, which is projected to balloon from about 7 trillion yuan (about $982 billion) currently to approximately 30 trillion yuan (about $4.2 trillion) in 2035, raising its share in the economy from about 6% to roughly 10%, Hu Zuquan, a researcher at the State Information Center, a public institution affiliated