Investors compete fo annuity licenses
By Shangguan Zhoudong (chinadaily.com.cn)Updated: 2007-05-28 14:46
Some qualified financial institutions began mapping out new corporate annuity plans and intend to target small- and medium-sized enterprises (SMEs) whereas before they serviced only large-sized enterprises before such as telecom, petroleum and chemical giants.
Statistics show that corporate annuity business focuses on profitable sectors such as electricity, information technology, petroleum, manufacturing, tobacco and transportation sectors. They are concentrated in China's economic booming areas including Guangdong, Zhejiang, Jiangsu and Liaoning provinces and Qingdao and Shenzhen cities.
But China's corporate annuity market recorded modest profits in recent years. "Large-sized enterprises are able to give competitive prices,” said a commercial bank source. In order to obtain more business, we must offer a lower price, and some other financial institutions have to provide additional preferential policies. "
"We are actively studying the investment management on SMEs' annuity," said a source with China Southern Fund Management Co Ltd. "On the premise of abiding by laws and regulations, our company is considering a way to collect SMEs' annuity and then establish a fund for investment."
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