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China Guodian to enter property insurance

By Wang Lan (chinadaily.com.cn)
Updated: 2008-12-18 15:41

China Guodian Corporation is considering setting up a property insurance company in Beijing to diversify business into other areas, aiding its move towards becoming a more comprehensive energy conglomerate, a source said today.

China Guodian will hold the majority stake in the proposed new insurance company, whose registered capital is expected to reach 1 billion yuan ($146 million).

In the first half of 2008, China Guodian invested in a life insurance company. Later in September, the group purchased a 19.6 percent stake in a city commercial bank in Shijiazhuang, capital city of Hebei province, becoming the bank's largest shareholder.

Prior to China Guodian, the State Grid and several other energy groups also expanded their businesses to the financial sector. They have established a number of insurance companies and hold stakes in securities and futures brokerages.

China Guodian Corporation is the nation's leading State-owned power generation group and as of June 2008, its total assets amounted to 284.3 billion yuan.