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CBRC allows BoComm, Bank of Beijing to invest in insurers

Published: 02 Jun 2009 21:53:52 PST

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Jun. 3, 2009 (China Knowledge) - The China Banking Regulatory Commission (CBRC), the nation's banking watchdog, has given approval for Bank of Communications (BoComm)<601328><3328> and Bank of Beijing<601169> to invest in insurance companies, sources reported on Tuesday.

BoComm, the fifth largest bank in China by assets, will reportedly take over China Life's stake in China Life-CMG Assurance Co, a joint venture (JV) which is 51% and 49% held by the country's top insurer China Life Insurance<601628><2628><LFC> and Commonwealth Bank of Australia, respectively.

Bank of Beijing, one of the first lenders allowed to invest in insurers, will buy into ING Capital Life Insurance Co Ltd, a life insurance JV equally owned by Capital Group of Beijing and ING Insurance, which also holds 16.07% stake in Bank of Beijing. The stake transfer details remain unclear.

The banks' specific plans are still subject to approval from the State Council.

Industrial and Commercial Bank of China (ICBC)<601398><1398>and China Construction Bank (CCB)<601939><0939> have also submitted plans to invest in insurance firms, but they have not yet secured regulatory approval.

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