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Property recovery will not happen soon

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FOREIGN insurance players' appetite for the mouth-watering China cookie is once again evident in the latest deals between China Everbright Group and National Mutual Group.

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China Everbright Group has agreed to take a five per cent interest in National Mutual Asia from its parent National Mutual (Bermuda), which has in turn agreed to take a 8.7 per cent stake in China Everbright-IHD Pacific controlled by the mainland group.

The cross-holding relationship between National Mutual and China Everbright puts the insurance company in a vantage point in its plan for the mainland market.

China Everbright is wholly owned by the State Council of China, which assesses applications from overseas insurance companies for business licences.

But for a foreign insurance company to form ties with mainland heavyweights is not a rare story.

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But the problem for overseas insurance players is that the mainland market, however great its potential, is not open to foreigners yet, although some, such as American International Assurance, have a presence in Shanghai.

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