Online-only insurer ZhongAn Online P&C Insurance will form a joint venture with Hong Kong-based property group Sinolink to explore overseas opportunities.
The technology unit of the Shanghai-based insurer will contribute RMBmillion (US$7.6 million), while Sinolink will shell out RMB60 million (US$9.06 million) as capital for the joint venture, according to separate stock market filings by the companies, which are both listed in Hong Kong. ZhongAn will hold a majority stake of 51%, while Sinolink will have the remainder, reported Nikkei.
According to a statement from ZhongAn, the move is part of mainland China’s Belt and Road Initiative, which seeks to create a trade and infrastructure network across Asia and Europe, with China at the centre. The joint venture will explore overseas investment opportunities in markets touched by the Belt and Road Initiative.
Ou Yaping, chairman of ZhongAn, holds a 45.1% stake in Sinolink, which in turn has a 6.62% stake in ZhongAn, according to the insurer’s IPO prospectus.
In September, ZhongAn, which is backed by Chinese economic giants Alibaba, Tencent, and
Ping An Insurance, raised US$1.5 billion in its Hong Kong IPO. This was the largest-ever insurance technology listing in Hong Kong, with over 100,000 retail investors having subscribed.
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