China's efforts to further open up the senior living market in the country for foreign investment has attracted attention from Lendlease, Australia's largest operator of retirement living communities.

Last month, the National Development and Reform Commission (NDRC) and the Ministry of Commerce jointly published the latest shortened negative list for foreign investment, in which the investment is given access to more new items compared to the version of the list in 2018.

According to Xinhua News Agency, the list permits the establishment of senior living organizations and social welfare institutions.

"We applaud the government really setting positive policies, and giving us certainty around the direction so that is helping our investment confidence in investing here in China," said Tony Lombardo, chief executive officer of Asia with Lendlease.

David Hutton, the managing director of development in Asia for Lendlease, added the policy is terrific because it really improves the living options for senior people in the country.

Chinese culture respects senior people, but modern couples have little time to take care of their family elders, Hutton added.

Given this background, Lendlease is going to welcome the first batch of clients in its first senior living project in China in the suburban Qingpu district of Shanghai in 2021.

About 10 years ago, Lendlease made the decision to be an investor in China for the long term. After years of market research and study, communications with local Chinese real estate developers, along with witnessing policy changes by the government, the company finally decided to focus on the area where it has an advantage and expertise, senior living.

"(It is) the Chinese government's pro-active policy that gives us the confidence to make the investment," Lombardo said, adding the shorter negative list will create more development opportunities for investors from all over the world.

The World Health Organization said the proportion of people over the age of 60 in China will increase to 28 percent of its total population by 2040 from 12.4 percent of the total in 2010.

The Chinese Academy of Social Sciences (CASS) also forecast that the Chinese population aged 60 years old and above will reach 483 million by 2050.

The grey boom has created a problem for the country on how to take care of older people, while at the same time the senior living business is showing huge potential.

With the nation's first batch of middle-income people about to reach retirement age, China's senior living industry is projected to grow sharply in the coming years.

By 2020, China's senior living sector is about to reach a market scale worth 7.7 trillion yuan ($1 trillion), and further balloon to 22.3 trillion yuan by 2030, a report published by CPIC Allianz Health Insurance Co Ltd said.

"The government policy reflects there is an aging demographic, which is important. We feel we could make a contribution and create a differentiated and special product here," said Hutton, who explained how Lendlease decided to expand its presence in the China market by combining its international experience with oriental business practices.

After securing its first project, Lombardo said Lendlease wants to accelerate its growth in China as the company expects to complete and operate several projects in the years ahead.

"The importance for China being in our business is long term," said Lombardo. "Hopefully in the future we can manage and complete five projects. That's our strategy."

He explained that the company will focus on the Yangtze River Delta region, especially Shanghai.

The first project, named Ardor Gardens, looks to provide quality resort-like services and a healthy lifestyle for 1,300 residents in over 850 apartments. The community will include a complete range of facilities and recreational areas, health and wellness facilities such as a spa, swimming pool, restaurant and a large community clubhouse.