BNP Paribas, Pudong Development Bank to Launch Insurance JV

SHANGHAI, Jun 30, 2008 (SinoCast China Financial Watch via COMTEX) -- PIBSF | Quote | Chart | News | PowerRating -- BNP Paribas (China) Ltd., the China-incorporated subsidiary of BNP Paribas, said its parent has entered into a memorandum of understanding (MoU) with Shanghai Pudong Development Bank (SHSE: 600000), on the establishment of a Sino-foreign insurance venture.

As early as the end of 2006, Pudong Development Bank had been said to be appointed by BNP Paribas as its partner to set up a joint venture insurer in China. Mignonne Cheng, chairman and the legal representative of BNP Paribas China, on June 26, 2008 said that both sides had been in talks with each other for a long time and a MoU had been inked.

In view of BNP Paribas' customer base and business scope, the lender prefers to launch an insurance joint venture in partnership with a Chinese bank, Mignonne Cheng added. The foreign lender will bring its abundant international experience and deep understanding of professional knowledge to Pudong Development Bank, meanwhile, the Chinese partner will provide support with its wide business network and sound customer base in China.

However, the detailed regulations about the establishment of Sino-foreign insurance ventures have not been released yet. Both parties now are expecting such regulations, Francois Cristofari and Mignonne Cheng said. It will speed up the cooperation between them.

As for the partnership with Bank of Nanjing, BNP Paribas currently has a 12.6% stake in the Nanjing commercial lender, Francois Cristofari said, and they will cooperate in areas like consumer credit and lending, wealth management, corporate banking and investment banking, risk control, and management, with the help of Bank of Nanjing's local marketing network and understanding of local market.

In April this year, BNP Paribas, a French financial service provider, gained approval from the China Banking Regulatory Commission, the nation's banking watchdog, to set up its locally incorporated subsidiary in China. By now, BNP Paribas China, as the China-incorporated subsidiary of BNP Paribas, has been able to offer diversified banking services to mainland customers. In the future, the China-incorporated subsidiary will chiefly focus on three businesses including retail banking, corporate banking and investment banking, and asset management.

Besides, BNP Paribas China is expected to be licensed to provide all-round renminbi financial services in the mainland circa July or August 2008, the chairman disclosed, and the lender will launch more services at the time.

(USD 1 = CNY 6.86)

From www.cnstock.com, Page 1, Friday, June 27, 2008 info@SinoCast.com

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