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Chinese Township Company Invests in US Insurance Group
Wanxiang America Corporation, the solely owned overseas unit of the famous Chinese township company "Wanxiang Group Corporation" set up a joint venture with American Horton Iurance Group. This marks the Chinese Township Company's first appearance in the overseas finance and insurance industry.
Both sides set up Wanxiang Horton Insurance Brokerage in Chicago, with Wanxiang taking 51% controlling stake of the joint venture, the first step of the Wanxiang Group's entry into the overseas finance and insurance industry.The Wanxiang Group deals with automotive components in Zhejiang Province. Wanxiang America is the biggest Chinese company in Midwest of US.
The group¨s chairman Lu Guanqiu said, Wanxiang has always considered the insurance industry is yet to be developed and hasgreat market potential. The decision to invest in the biggest US non-listed insurance company is an important move in the Wanxiang Group's industry wide expansion.
Lu said that through cooperation they can gain experience of foreign companies, master industry skills, and gather valuable experience for the insurance brokerage business in China. At present, both sides will exploit their edge in the marketing and insurance brokerage network to get into the market early. This will result in a favorable position in the fierce competition.
Wanxiang will provide insurance consultation mainly to Chinese companies with business in US or American companies with operations in China.
People in the industry said, as China¨s entrance into the World Trade Organization draws closer, China's finance market will become more open, and more foreign insurance companies will eer the Chinese market. However, special agencies, service systems and a good brokerage network have yet to be established in China.
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