Top Biz News
BoCom launches insurance business
By Zhou Yan (China Daily)
Updated: 2010-01-29 08:07
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Bank of Communications Co Ltd (BoCom), the county's fifth-largest lender by assets, launched its insurance business yesterday, as part of its goal of becoming a full-service financial conglomerate.
The new enterprise, entitled BoCommLife Insurance Co, makes BoCom the first domestic lender to invest in the mainland's insurance sector.
BoCom will hold a 51 percent stake in the new company while the Commonwealth Bank of Australia will control the remaining shares. HSBC Holdings PLC holds a 19 percent stake in BoCom.
"The move was a critical step forward for BoCom in our efforts to become a financial conglomerate," Niu Ximing, executive director of the Shanghai-based lender, said yesterday.
According to Guan Huanfei, the newly appointed general manager of BoCommLife Insurance Co, BoCom will increase its capital in the joint venture to 500 million yuan ($73.24 million) from the initial registered capital of 200 million yuan, making it a nationwide insurer.
"By sharing the bank's resources, including its networks, client base, sales channels and IT systems, we will enjoy strong growth potential," Guan was quoted as saying to Reuters. "We will become part of BoCom's wealth management strategy," he said.
Apart from BoCom, other Chinese banks including Bank of China and Bank of Beijing have also obtained approval to invest in insurance firms as part of a broader push by lenders to expand their business portfolios.
