China's largest online-only insurer has announced its first new joint venture since its massive initial public offering (IPO) last month.

ZhongAn Online Property & Casualty Insurance said it had entered into a related party agreement with Sinolink Worldwide (HK) to establish a microfinance firm in Chongqing in western China.

Sinolink Worldwide (HK) is a wholly-owned subsidiary of Sinolink Worldwide Holdings, which is 45.1% owned by ZhongAn Chairman Mr Ou Yaping who also controls a stake of more than 15% in ZhongAn through companies owned by him and his brother, Ou Yafei.

The venture, which is unnamed as yet, will have a registered capital of CNY300 million (US$45.5 million), in which ZhongAn has agreed to contribute 70% or CNY210 million, and Sinolink Worldwide (HK) the remaining 30%.

The company said it will provide loans, discounted notes, fund transfer and equity investments as permitted by the Chongqing Finance Office.

ZhongAn was set up in 2013 by the heads of internet giants Alibaba Group Holding and Tencent Holdings, along with Ping An Insurance Group.