The China Insurance Regulatory Commission has approved two of the six applications for listing programmes submitted by domestic insurance firms. Announcing the decision, Li Kemu, vice-chairman of the commission, said public offerings would enhance the operating efficiency and transparency of insurers and enlarge their capital base.
The two successful applicants New China Life Insurance and Dazhong Insurance were expected to move quickly to list on the domestic market. Meanwhile China Life, China's biggest life insurer, and its chief domestic rival Ping An, have stated plans to list in Hong Kong.
To secure a successful initial public offering, the Shanghai-based property insurer Dazhong has been in talks with several domestic companies to sell its 49 per cent stake in its joint venture Allianz Dazhong Life Insurance, which has not made a profit since it was set up in 1999.