The restructuring plan of the People's Insurance Company Group of China (PICC) was recently approved by the State Council. And the China's most time honored insurance agency will become a limited company by the end of July.
PICC, established in 1951, is a comprehensive insurance (financial) company with a 15.5 billion yuan (US$2.27 billion) registered capital. It parents eight subsidiaries, including PICC P&C listed in Hong Kong (02328.HK). The restructuring will convert PICC from a state-owned company to a limited company
According to a source close to PICC, this restructuring aims at financing for PICC's sustainable development. So far there haven't been hints on whether or not the limited company will invite strategic partners.
"We never talked about going public. This restructuring is our first step, based on which we make further progress", said PICC's Vice President Zhou Shurui earlier in April that there was no definite schedule for the company to become public.
Last year, PICC obtained 55 percent of Huawen Holdings' entire stake, and took over 32.35 % of shares from China Credit Trust Co., Ltd., approved by the Ministry of Finance. Hence, PICC has broadened its scope from the original insurance and financial management to trust, fund and other non-insurance fields.
For more information, please consult the original coverage in Chinese at:
http://www.caijing.com.cn/2009-07-08/110195231.html
(China.org.cn by Maverick Chen, July 9, 2009)
