THE People's Insurance Company of China said it would take a 32.35-percent stake in China Credit Trust from the country's Ministry of Finance.
The move would make PICC, the second-largest insurance group in the Chinese mainland after China Life, the biggest shareholder of China Credit Trust, PICC told Xinhua yesterday.
Established in 1995 with a registered capital of 1.2 billion yuan (US$176.5 million), China Credit Trust manages assets of 66.4 billion yuan and made a pre-tax profit of 1.16 billion yuan last year.
It is the major shareholder of several financial institutions, including Guodu Securities and Harvest Fund Management Co.
Acquiring the stake would give PICC the license to operate trust, futures, securities and fund services and it will be a step in its ambitious goal to establish a "financial holding company," PICC said.
The move is meant to raise capital support to key state-owned financial companies. It also facilitates the company's reconstruction and preparation for next year's overall listing, said a PICC official.
PICC Property and Casualty Company Limited, its property insurance unit, was listed in Hong Kong in 2003.
According to PICC, after the purchase it would work with China Credit Trust to develop new products.