CNinsure, a China-based independent insurance intermediary company, has signed a joint venture agreement with Shanghai Puyi Investment Consulting to expand into wealth management market in China.
Under the terms of the agreement, CNinsure will invest RMB18m to take 19.48% equity interest in Fanhua Puyi, and the total capital will be injected in the joint venture in installments within two years.
In addition, CNinsure is entitled to gradually increase its shareholdings in Fanhua Puyi when its business becomes more mature.
The new joint venture, to be named Fanhua Puyi Investment Management, will offer independent investment research and wealth management services to both institutions and individuals.
CNinsure chairman and CEO Yinan Hu said that with the new joint venture the company will be able to leverage strengths of both parties, including its sales capability and abundant customer base and Shanghai Puyi’s expertise in research and market experience, to cultivate opportunities in wealth management market in China.
The joint venture is expected to be established in the fourth quarter of 2010.