Overseas funds are encouraged to take part in the development of rest homes for the elderly in Guangzhou, the capital of Guangdong province, said a local civil affairs official.

Zhuang Yuequn, director of the city's civil affairs authority, said at the annual session of the local legislature that a pilot project involving overseas-invested rest homes for the aged will soon be carried out in the city's Nansha district.

"Services for the elderly will be a promising industry. Overseas investment, especially from Hong Kong and Macao, will be welcomed as the two special administrative regions have developed a very sound system in this regard," Zhuang said.