Ping An Trust, Guangzhou Zhongda set up health clinic JV

Jul. 6, 2009 (China Knowledge) - China Ping An Trust & Investment Co Ltd, a subsidiary of the country's second largest insurer, Ping An Insurance (Group) Co<601318><2318>, has set up a health clinic joint venture (JV) with Guangzhou Zhongda Holding Co Ltd with a total investment of between RMB 200 and RMB 500 million, the Shanghai Securities News reported on Friday.

The new JV, Guangzhou Yikang Chain Clinic Co Ltd, has appointed Xiao Wei, who comes from Ping An Trust, as its chairman, said the newspaper.

The JV will invest around RMB 8 million in its first clinic and expects to open nine more clinics in the Pearl River Delta this year.

The new company will hire Town Health International Holdings<3886> as management advisor to introduce advanced medical services like those in use in Hong Kong.

Yuan Li, spokesman of the China Insurance Regulatory Commission (CIRC), said earlier that China will encourage insurance companies to set up new medical institutions to support healthcare reform, according to an earlier report from China Knowledge.

Guangzhou Zhongda Holding Co Ltd, a state-owned limited liability company founded by Sun Yat-sen University in 2005, holds shares in more than 50 enterprises. Its enterprises are concentrated in medicine, IT and electronics, publishing and printing, and chemicals and environmental protection as well as education management.