China Guodian Plans to Establish Property Insurer

China Guodian Corporation is planning to set up a property insurance company together with five other companies including Shenzhen-listed Hubei Triring Co., Ltd.

The China Guodian plans to take a controlling 40% stake in the property insurer, to be registered in Wuhan city, Hubei Province, and Hubei Triring will invest not more than CNY 200 million to hold a maximum 20% stake. The other four investors in the insurer are Guodian Capital Holding, Wuhan Iron and Steel Group Co., China Power Engineering Consulting Group Corporation and Hubei United Development Investment Group Co.

The National Development and Reform Commission, the nation's top economic planning body, has approved of the deal.

China Guodian and its member companies currently own minority stakes in one property insurer and one life insurer and hold controlling stake in one life insurer. The investments are believed to come in line with China Guodian's strategy to build a financing platform in the process of growing into a comprehensive power group.