CHINA PACIFIC INSURANCE FORMS ALLIANCE WITH CHINA EVERBRIGHT

China Pacific Insurance Co, one of China’s largest insurers, has formed a strategic alliance with financial conglomerate China Everbright Group, in preparation for China’s entry into the World Trade Organisation (WTO). China Everbright — which has banking, securities and insurance arms — will help China Pacific in the areas of financing, securities investment and agency services. Chinese legislation does not allow banks, insurers and securities brokerages to participate in each other’s businesses, but officials have hinted at possible changes as WTO entry draws closer. The government also plans to expand the investment channels of domestic insurers, which are largely limited to bank deposits and bonds, in order to improve their financial standing, according to domestic media. It will in addition allow insurers to raise funds through stock listings. China Pacific said earlier this month that it had formed a strategic alliance with China Merchants Bank, as part of efforts to build cross-sector co-operation in the financial market.