State Grid Corp of China, the monopoly power distributor in all but five provinces, is close to setting up two insurance units in its latest expansion into the insurance sector by a state energy giant, according to a state media report.
The firm planned to join forces with several dozen major enterprises to establish Yingdataihe Life Insurance and Yingdataihe Property & Casualty Insurance, the Securities Times quoted officials responsible for their establishment as saying.
'Preparatory work for their establishment is ongoing and the goal is for them to open for business this year,' an official said.
The two insurance units will have combined registered capital of 600 million yuan and will be headquartered in Beijing.
The move will complete State Grid's expansion into the financial sector, where it has already made some investments, including a 20 per cent stake in the country's sixth-largest lender, Guangdong Development Bank, acquired late last year.
State Grid is also a founding shareholder of Huaxia Bank and has a stake in a futures brokerage, an insurance agency, a trust company and two stock brokerages.
The company's spokesman could not be reached for comment yesterday.