Intends to purchase stake in China Life-CMG Insurance, a venture between China Life Insurance and Commonwealth Bank of Australia
Bank of Communications (BoCom), a China-based lender, is expecting to commence its insurance business operation before year end – reported Reuters.
Accordingly, BoCom intends to purchase a stake in China Life-CMG Insurance, a venture between China Life Insurance and Commonwealth Bank of Australia.
Chinese lenders have been keen to expand into non-banking financial businesses to diversify revenue streams. BoCom already owns a leasing unit, a trust subsidiary and a fund venture with Schroders, and is also planning to seek a brokerage licence.
As part of its efforts to strengthen consumer banking, BoCom rolled out OTO wealth-management services three years ago. The OTO service will be expanded to about 400 banking outlets by the end of this year, as quoted in Reuters.