China Everbright-IHD Pacific is negotiating to buy equity stakes in National Mutual Asia and International Bank of Asia (IBA) from its controlling shareholder.
The company, with interests in retailing, property and hotels, said the 2.5 per cent stake China Everbright Holdings owns in National Mutual Asia and the 20 per cent stake it has in IBA are among the proposed acquisitions.
China Everbright Holdings is an investment company under China's State Council.
The company said no terms had been finalised and no binding agreement entered into. It said it was not the subject of a reorganisation plan involving its controlling shareholder, as had been suggested by press reports.
It denied reports it was setting up a joint venture with National Mutual to sell life insurance in China.
The company's shares rose 90 cents to $4.75 yesterday, on reports about the proposed acquisitions.
The shares have doubled in value this year.