China Taiping to Sell Out 100% Interest in Ming An Insurance

State-owned China Taiping Insurance Holdings Company Limited is selling out 100% equity interest in Ming An Insurance Company (China) Ltd. through a public auction on Tianjin Property Rights Exchange.

The bottom price of the stake auction is CNY 1.541 billion and the auction started on September 20, 2010 and will end on October 22, 2010.

The stake disposal comes in accordance with the requirements governing transfer of state-owned assets of financial enterprises issued by China's Ministry of Finance.

Any prospective purchaser of the 100% interest in Ming An Insurance shall be Chinese corporate group having at least five member companies and meet requirements with regard to non-competitive shareholding in insurers issued by China Insurance Regulatory Commission (CIRC).

CIRC asks more than two insurance companies that are controlled by the same institution or one of them is controlled by the other should not provide competitive insurance business.

Shenzhen-based Ming An Insurance is principally engaged in property and casualty insurance business. It is inevitably mired in competition with Taiping Property Insurance Co., the property insurance arm of China Taiping Insurance.

HNA Group, which owns licenses to futures brokerage, financial leasing, trust, financial company and life insurance, is reported to be a prospective purchaser of Ming An Insurance.