HSBC Insurance Brokers will form a joint venture with two mainland companies to offer insurance broking and risk management services to domestic and foreign clients.
The firm said yesterday it would be the first foreign-invested joint venture in China with a licence to offer insurance services to domestic customers.
In January, Aon, the world's No2 insurance broker, said it had been awarded the first insurance brokerage licence given to a foreign company in China.
HSBC will inject US$498,000 for a 24.9 per cent stake in Beijing HSBC Insurance Brokers, which will be capitalised at 16 million yuan (HK$14.86 million). The other partners are Shanghai Hua Yu Asset Management, which will hold 50.1 per cent, and Beijing Zhong Ke Engineering, with 25 per cent.
The Beijing-based venture will broker large commercial risks, reinsurance, international marine, aviation, transport and health-care insurance to foreign-invested entities, and will also be able to offer services to domestic companies investing or exporting outside the mainland.
Aon said in January it would partner China National Cereals, Oil & Foodstuffs Import & Export Corp in a joint venture, of which it could hold up to 50 per cent.