Insurance novice Charoen Pokphand Group is Beijing's friend

The Charoen Pokphand Group, which bought HSBC's 15.6 per cent stake in Ping An Insurance, is a newcomer to the insurance business. It is better known for its chicken meat and animal feed.

The Thai-based conglomerate can trace its roots to China as its founders, brothers Chia Ek Chor and Chia Siew Whooy emigrated from Guangdong to Thailand.

In 1921, they set up a small seed shop called Chia Tai Cheung in Bangkok's Chinatown. The company gradually expanded into producing animal feed and other livestock, including chicken, ducks and shrimps. It is among the largest producers of animal feed, shrimp and poultry worldwide.

The group employs more than 280,000 people and invests in 15 countries, making more than US$33 billion annually. Its poultry and animal feed arm CP Pokphand listed in Hong Kong in 1988.

The company was among the first foreign firms to enter the mainland in 1979 - just one year after the economic reform was unveiled. Its first focus was on animal feed and other agricultural business but it later expanded into motorcycles, supermarkets, telecommunications and finance. It has had a banking business in China since 1992.

The group, however, has until now had no insurance business, so the investment in Ping An - China's second-largest insurer - is considered a big play to expand its financial arm.