Chinese Insurer Mulls ReformsThe Shanghai-based Pacific Insurance Co, one of the pioneers in China's reforms of the insurance sector, is now considering whether or not to allow its property insurance business section to go public on the equity market, said a senior official with the company."The listing debut of our property insurance arm could happen as early as the middle of next year," said Wang Guoliang, general manager of the company. The move is believed to be one of the most important to have been taken by any of the nation's mega finance enterprises, which are currently busy preparing to enter the stock market in search of fund support and opportunities to expand business. "Currently, the work that is needed to enter the market is all going very smoothly and quickly," said Wang. Wang said the company is set to provide their official application for the listing to the China Securities Regulatory Commission - the top watchdog for the Chinese securities industry - in the next few days. Wang said his company may well turn out to be one of the best performing bluechips on the market, thanks to high and stable performances in the past. Since the establishment of the company, its property insurance arm has secured an average growth rate of 25 per cent, a very high figure when compared with its domestic rivals. Its returns have soared to more than 50 per cent in the first half of the year. Referring to its life insurance arm, Wang said the company is now seeking proper international partners, because foreign companies will soon be licensed to co-operate in joint ventures in China. Wang said the company is now undergoing thorough negotiations with many foreign counterparts, including those from the United States, Europe and Southeast Asia. "We will choose the most promising and favourable company to co-operate with in the future," said Wang. He said there would soon be a conclusion reached about the joint venture. "Our life and property businesses will be totally separated when we enter into partnership with a foreign company," said Wang. An insurance source predicted that their choice would be the US-based Aetna Life Insurance Co, and a source with the Aetna Shanghai Representative Office confirmed that negotiations are under way, but declined to reveal further details. Wang said the Pacific Insurance Company is in a very favourable position to negotiate with Aetna because it has extensive business networks and high quality assets. The company has stepped up its efforts to reshuffle its business portfolios in a move to be more competitive in a market that has become increasingly fierce in recent years. |
| People's Daily Online --- http://www.peopledaily.com.cn/english/ |