PICC P&C Teams up with Hua Xia Bank on Bond Insurance

PICC Property and Casualty Co., Ltd. (SEHK: 2328), the listed arm of The People's Insurance Company (Group) of China Ltd. (PICC), recently inked a contract with Hua Xia Bank (SHSE: 600015) on providing bond insurance for loans for small- and medium-sized companies in Shanghai.

The Shanghai branch of the Hong Kong-listed property insurer on November 2 reached an agreement with the Shanghai branch of the Beijing-based commercial lender on bond insurance for loans for small- and medium-sized companies. It is the first time for a province-level insurance entity to sign such an agreement with a city-level banking entity in China and according to the agreement, consumers could obtain loans from the branch of Hua Xia Bank much easier after they buy related bond insurance from the branch of PICC Property and Casualty. The bank could ask for indemnity from the insurer provided that it fails to take back loans and related interest from those consumers.