As a result, the country has taken steps such as introducing a third pillar of its pension system to encourage citizens to not rely on state pensions and start investing in personal retirement products. The private sector has a significant role to play in supporting customers during their retirement years, he said.
Prudential had $228 billion assets under management as of June 30.
Wadhwani said that the evolution of regulatory frameworks that the government is developing will be beneficial to the country.
"In terms of the medium to long-term growth, it is absolutely important to have a strong risk and regulatory foundation. We also need to remind ourselves that China is the second-largest economy. And when China grows at 5%, it has a significant impact on the economic activity for the rest of the world," he said.
China's roll out of the private pension system, also known as Pillar 3, "is very pioneering", said Jung-Ho Rhee, Hong Kong-based vice chair of Mirae Asset Securities, during the same panel discussion.
Mirae Asset Financial Group managed $535.6 billion in client assets as of Sept. 30.
Industry practitioners should tap into that opportunity to help develop a deeper social safety net for China's middle class, which can help restore consumer confidence, he added.
Pension plans are important, he said. For instance, the U.S., Japan and Korea have deep pension systems, which have been critical for maintaining consumer confidence and encouraging spending among the middle class.
He added that China still has an export-heavy economy, and the country needs more of its businesses to take a multinational approach and to grow their market share in the global economy. Pension funds and individuals should also look for investment opportunities outside China, as there are many high-quality assets in the U.S. and other regions in Asia, he said.