Ninety-one companies yesterday agreed to jointly contribute the 2.24 billion yuan ($343 million) of registered capital required to set up an insurance exchange in Shanghai.
Though the proposal was mooted as far back as 2010, the founding members were meeting for the first time to discuss the development of the exchange, which is seen as a key part of Shanghai's vision to grow and internationalize its insurance market, industry insiders told Shanghai Daily.
The exchange will be tasked with aligning local businesses with global insurance practices, and upgrading the city's insurance infrastructure to meet its goal of becoming an international financial center by 2020.
Besides a majority of insurance companies and their subsidiaries, the founding members include nearly 20 firms from other sectors, including Shanghai International Group and the investment arm of Fosun Group, according to an earlier report by China Business News.
Each company has agreed to hold between 5 million and 30 million shares in the exchange to meet the registered capital requirement of 2.235 billion yuan.
Pei Guang, head of the Shanghai branch of the China Insurance Regulatory Commission, said in April that the State Council has approved the creation of the exchange — which will provide trading facilities and services for insurance, re-insurance, and insurance assets — and that it could open for business as early as next month.
The facility will also support the operation of insurance brokerages, consulting companies, training organizations and financial information companies.
The regulator earlier vowed to open the re-insurance market to domestic and foreign capital, and allow insurance firms and mutual insurance companies to be set up within Shanghai's free trade zone to support the exchange.
