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The Hong Kong and Shanghai Banking Corporation (HSBC) Holdings PLC said Tuesday its unit HSBC Insurance Holdings Ltd. has agreed to take a 10 percent interest in Ping An Insurance Co. of China Ltd. for 600 million US dollars.
"China's insurance and wealth management businesses are growing rapidly and the long term prospects are very favorable," HSBC group chairman John Bond said in a statement.
Under the agreement, the HSBC will subscribe for new common shares in Ping An.
As part of the transaction, HSBC will also enter into separate agreements to cooperate with and provide technical assistance to Ping An, which will include the establishment of a broad range of strategic alliances in personal financial services.
Ping An Insurance is the second largest life insurer in China and third largest property and casualty insurer.
In 2001, Ping An's life insurance operations had a 28.7 percent market share with a reported life premium income of US$4.8 billion.
It also held a 9.8 percent market share in the property and casualty insurance market with a premium income of 776 million US dollars.
(Xinhua News Agency October 9, 2002)
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