China has begun to pilot its much-debated houses-for-pensions program in four cities as the country seeks alternative methods to cope with the rising needs of an aging population.

On July 1, Beijing, Shanghai, Guangzhou in Guangdong Province and Wuhan in Hubei Province launched a scheme that allows home owners over 60 to deed their houses to an insurance company or bank, which will then grant them a certain amount every month depending on the value of the houses and the person's life expectancy.

According to the China Insurance Regulatory Commission (CIRC), the pilot will last for two years.

CIRC official Yuan Xucheng said the pilot is intended to expand funding channels and improve the quality of the elderly care system.

The program, while hailed by some experts as an innovative solution, has sparked heated debate among the public, especially among those whose parents have property and fear losing their inheritance.

Latest official data show that the number of people aged above 60 has reached 202.43 million in China.