Two Chinese banks received approval form the Chinese banking regulator to acquire stake in insurance companies. Bank of Communications will acquire 51% stake in China Life-CMG Insurance from China Life Insurance Co., and Bank of Beijing will purchase undisclosed amount of stake in ING Capital Life Insurance Co.
Both the deals has been approved by China’s insurance industry regulator, and need endorsement from China’s cabinet for coming into affect. To minimize the dependence of banks on lending, the Chinese government has relaxed rules to facilitate participation of banks in brokerage, fund management, and insurance businesses.
According to Reuters, other banks including China Construction Bank Corp and Industrial & Commercial Bank are exploring opportunities to invest in Chinese insurance firms.