Shenzhen listed Meisheng Cultural & Creative Corp has announced its plans to establish Kangyuan Life Insurance with seven other shareholders. The registered capital of the proposed insurer shall be CNY2bn ($293m).
The plan was announced despite the fact that insurance regulators have not issued an insurance company licence since February 2017 amidst an intensified crackdown on risks in the insurance sector.
Meisheng said that it is participating in the establishment of a life insurance company so as to effectively grasp the new round of development opportunities in the insurance industry that has been spurred by financial sector reforms and innovation in the country. The move would help the company raise its overall competitiveness, sustain profitability, improve liquidity and guarantee cash flow, Meisheng said.
Apart from Meisheng, there have been announcements this year by other prospective investors of plans to establish insurance companies. These included plans announced in March by Panda Financial Holding to set up Hefu Life Insurance Mutual. In May, Shenzhen-listed technology company Chengzhi said it planned to establish Chengzhi Health Insurance with partners including Fuzhou Investment Management.