It has been in talks with the Beijing-based trust firm for a long period of time. However, sources said days ago that another Chinese insurance conglomerate, the People's Insurance Company of China (PICC), also cast its eye to the 32.35 percent stake in China Credit Trust. Notably, the China Insurance Regulatory Commission (CIRC), the top Chinese insurance regulator, was reportedly to prefer PICC rather than China Life to make the deal. PICC is making efforts to acquire the 32.35 percent stake despite that it has gained a license from concerned Chinese authorities to be engaged in the nation's trust industry, revealed insiders.
Li Yan, a top executive with China Credit Trust, declined to reveal more about the story, adding that it was in talks with China Life over the issue only. China Life had submitted a purchasing proposal to the CIRC; however, the proposal has not gained approval from the Chinese insurance watchdog till now. China Credit Trust also filed a proposal with the China Banking Regulatory Commission (CBRC), the top Chinese banking regulator, who now takes charge of the trust sector and the banking sector.
Liu Hong, president with PICC Investment Holdings Co., Ltd., an investment vehicle of PICC, denied the story, adding that he knew nothing about it. Liu Lefei, chief investment office with China Life, declined to make any comments, adding that detailed information would be unveiled after it gained approval from the CIRC.
As a capital utilization platform, a trust firm can make industrial investments as well securities investments, Li Yong, a professor with Southwest University of Finance and Economics, said in an interview. Besides, as an efficient asset management system, it plays a significant part in protecting investors' interest. Therefore, the nation's insurance giants, including China Life and PICC, try their utmost to gain approval from concerned Chinese authorities to be engaged in this field.
There is a possibility for PICC to win the battle, forecasted Li. However, some industry observers do not think so. In their opinion, life insurers are in much urgent need to stretch out their reach to trust than property insurers in the country. Notably, PICC has already had a license to specialize in the nation's trust industry.
(USD 1 = CNY 6.82)
From www.cnstock.com, Page 1, Thursday, September 25, 2008 info@SinoCast.com

More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index