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 | Friday, April 21, 2000, updated at 11:25(GMT+8) | ||||||||||||
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CITIC, Prudential to Start Joint Venture in GuangzhouChina's prestigious CITIC group has reached an agreement with the British Prudential Plc to start a joint life and health insurance company in south China's Guangzhou City.Each side will have a 50 percent stake in the joint venture, which will require an investment of US$ 23 million, the two sides announced at a press conference on April 20. Dominic Leung, managing director of the joint venture, said an application for license has been submitted to the China Insurance Regulatory Commission (CIRC) and that he expects the joint venture to be operational by the third quarter of this year. Established in 1979, CITIC, or China International Trust and Investment Company, had a unique and important function in the early stages of China's opening to the outside world. It has grown into a multinational group with assets worth 32.5 billion dollars. The company has a large variety of businesses ranging from banking and securities to leasing, with the exception of insurance. Hence, Chang Zhenming, deputy president of CITIC, said going into insurance marks a strategic step in the development of the company. He disclosed that CITIC is also planning to get into property insurance. In May 1999, Prudential Plc, the largest life and health insurance company in Britain, was approved by the CIRC to operate in China. It is the first British insurer to the go-ahead in China. The two sides signed an memo of understanding for the joint venture last December and signed the formal contract early this month in London.
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