China's e-commerce company Alibaba Group Holding is reportedly considering plans to acquire a stake in the state-run New China Life Insurance.
Unnamed sources were cited by Shanghai Securities News as saying that the Chinese Government’s investment arm Central Huijin Investment had intentions to divest some of its interest in the insurer to Alibaba.
As per the news paper, Central Huijin currently has 31.34% interest in New China Life Insurance, reported Reuters.
When asked about the latest development, an Alibaba spokeswoman declined to comment and called it market speculation, while New China Life spokesman said ‘there is nothing we can tell you.’
Meanwhile, a trading suspension was sought by New China Life Insurance on 19 January this year.
With a market capitalisation of $24bn, New China Life offers life insurance services and products in the country.
Alibaba and Tencent Holdings founders were part of a consortium of investors, who acquired interests in Ping An Insurance Group Co of China in a $4.7bn deal in December 2014.