The Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) Bank of Communications (Bocomm) and Bank of Beijing (BoB), are among the four local banks that have been given the green light to invest in insurance companies.
Known for keeping banking and insurance sectors detached for fear of
threat to its financial system, the government has gradually become
more lenient in its policy and has allowed some integration of its
financial holding companies. A test run for China’s commercial banks to
invest in insurance companies has been approved in January.
ICBC will team up with China Insurance Group and Fortis in a venture
that is expected to obtain 100 per cent of Taiping Life, Taiping
Insurance, Taiping Pension and Taiping Asset Management Co. Meanwhile,
CCB has been given the go-ahead to take a 51 per cent stake in Happy
Life Insurance Co. Bocomm will buy a 51 per cent stake in China Life
CMG Insurance Co, of which Commonwealth Bank of Australia owns the
remaining 49 per cent. And Bank of Beijing has been given the carte
blanche to buy a 50 per cent stake in Pacific Antai Insurance Co, media
reports.
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