China Life plans 10% acquisition of Huishang Bank
November 30, 2006 | BY
clpstaff &clp articles &China Life Insurance (Group), one of China's biggest insurance groups, has announced plans to buy a 10% stake in Huishang Bank, the Asian Wall Street Journal…
China Life Insurance (Group), one of China's biggest insurance groups, has announced plans to buy a 10% stake in Huishang Bank, the Asian Wall Street Journal reports. China Life Insurance has been increasing its investments in Asia since March 2006, when new regulations widened investment opportunities in the banking and infrastructure sectors.
In November 2006, the company agreed, through a deal with Citigroup, to acquire a 20% stake in Guangdong Development Bank for US$723 million. Other plans in China Life's diversification strategy include the possible acquisition of a commercial bank in Zhuhai.
Huishang Bank was created in 2005 when six municipal commercial banks joined with several credit cooperatives in Anhui, a province in the east of China. The bank's registered capital is estimated at Rmb2.5 billion.
Ping An Insurance, China Life's biggest rival, has also launched key investments to support banks and infrastructure projects in China.
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