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The Bank of Communications, China's fifth largest bank, is in talks with indigenous conglomerates to jointly build a stock-holding insurance company based in the Chinese mainland.
The plan has been approved by the China Insurance Regulatory Commission and will involve a share capital of 500 to 800 million yearn (about US$60.46 to 96.74 million), Tuesday's China Securities Journal reports.
With its candidate headquarters in Beijing and Shanghai, the company will be established via the bank's Hong Kong subsidiary China Communications Insurance Co., Ltd.
Founded in November 2000, the Hong Kong subsidiary has a share capital of 250 million HK dollars and mainly deals in general insurance and re-insurance services.
In August, a fund management company jointly invested by the bank, the German-based Schroeder Investment Management Company and the China International Marine Containers will start its operation.
These recent moves, Industrial insiders claimed, have indicated the intention of the Bank of Communications to branch into insurance and securities sectors.
Although the central government still supervise the banking, insurance and securities sector separately, mixed operation has become an increasing trend among China's financial institutions, they said.
(Xinhua News Agency July 12, 2005)
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