Home / Business / Finance Tools: Save | Print | E-mail | Most Read | Comment
HSBC enters China's life insurance market
Adjust font size:

HSBC Life Insurance Company Limited, a joint venture set up by HSBC and the Beijing-based National Trust, opened for business in Shanghai Thursday, marking the global financial giant's entrance into one of the world's fastest-growing life insurance markets.

The joint venture, headquartered in Shanghai, has registered capital of 500 million yuan (73.2 million U.S. dollars). HSBC and the National Trust each hold a 50 percent stake.

The company will focus on the sector of China's population that has rapidly-growing discretionary income and will offer life, pension and medical insurance products.

"China is the focus of HSBC's strategy in emerging markets," said Zheng Haiquan, chairman of HSBC Asia Pacific. "If HSBC has no insurance business in China, we could not be called one of the world's largest insurance companies and China's largest foreign bank."

China's total life insurance premiums amounted to 733.8 billion yuan ( 107.3 billion U.S. dollars) in 2008, up 48 percent from the previous year, the second in scale in Asia after Japan. But its insurance penetration, or premiums as a percentage of the economy, was low at 3.3 percent, said David Fried, board chairman of the joint venture and chief executive officer of HSBC Insurance for Asia Pacific.

China's large population, low insurance penetration and ongoing economic reforms make for confidence in the important role the Chinese market would play for HSBC insurance's global expansion, he said.

HSBC also holds 16.78 percent of Ping An Insurance (Group) Co. of China, the country's second largest life insurer.

(Xinhua News Agency August 27, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Pet Name
China Archives
Related >>
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

September 8-12 Xiamen China Int'l Fair for Investment and Trade
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?