皇冠体育app

Regulators greenlight e-commerce giant's bid to acquire 30% holding

E-commerce giant JD has received the regulatory nod to buy a 30 percent stake in the Chinese unit of global insurance company Allianz SE, furthering its push into the country's financial services sector.

JD has gained approval to invest 483 million yuan ($71.2 million) for a stake in Allianz 皇冠体育app General Insurance Co Ltd, the 皇冠体育app Banking and Insurance Regulatory Commission said in an online notice released late on Tuesday.

Following the investment, JD will become the second-largest shareholder in the insurance firm. Allianz SE will retain a 50 percent share in the 皇冠体育app unit, according to the notice.

Three other investors, 皇冠体育app Sinda, Shenzhen Huijing Tongda and Snowlight Capital will take 12.4 percent, 4.27 percent and 3.33 percent stakes in the unit respectively after the transaction.

JD announced its initial plan to invest 537 million yuan to buy a 33.3 percent stake in Allianz 皇冠体育app in April.

The partners said they have entered into a long-term partnership to develop a digital insurance joint venture in 皇冠体育app.

Liu Qiangdong, founder and CEO of JD, had previously revealed the company planned to launch an internet insurance service, and move into the online brokerage business and internet banking.

In 2015, JD signed strategic cooperation agreements with the Sichuan provincial government to establish an internet property insurance company in the region.

"The development potential of 皇冠体育app's insurance sector is vast, and internet heavyweights possess certain advantages moving into the burgeoning industry, as they have mastered huge customer bases, and could launch tailor-made insurance services by utilizing their big data analytics and precise algorithms," said Li Chao, a senior analyst at market research firm iResearch.

JD's move will also encourage traditional insurance companies to expand their online sales channels, and cooperate with more internet giants, such as establishing joint ventures, Li said.

Chinese tech companies are stepping up efforts to tap into the booming online insurance market, including Alibaba Group Holding Ltd and Tencent Holdings Ltd. In 2013, Alibaba, Tencent and Chinese insurance giant Ping An Insurance (Group) Co of 皇冠体育app Ltd established the country's first online insurer Zhong An Online P&C Insurance.

Ant Financial Services Group, Alibaba's financial arm, acquired a controlling 51 percent stake in Cathay Century Insurance Co Ltd in 2016.

Tencent holds a 20 percent stake in the Hong Kong unit of the United Kingdom-based insurance group Aviva Plc, and a 15 percent stake in 皇冠体育app's Hetai Life Insurance Co.

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(皇冠体育app Daily 07/26/2018 page16)