Developer looks to benefit from business referrals through the strategic investment
Cheung Kong (Holdings) has agreed to buy 29 per cent of Ming An Insurance (Hong Kong) for $607.1 million.
Sources said the property developer was hoping to tap China's fast-growing insurance market through the deal as Ming An, a non-life insurer based in Hong Kong and seeking a listing in 15 months, also holds a licence to operate in the mainland.
Total premium income at the mainland's non-life insurers was 63.13 billion yuan for the first five months of this year, an increase of nearly 11 per cent from the same period a year ago, data from the China Insurance Regulatory Commission shows.
'As Cheung Kong runs businesses in Hong Kong and the mainland markets, both parties would benefit from business referrals,' an industry source said.
'Chinese insurance companies are gradually allowed to participate in other kinds of financial businesses, so Cheung Kong can also tap the fast-growing financial market as well,' he added.
Sources said Cheung Kong's 30 per cent-owned AMTD Group, a financial services company in Hong Kong, could also refer business to Ming An.