ICBC-AXA Life to set up asset management arm

ICBC-AXA Life Insurance Company will set up a joint venture asset management company, the first after President Xi Jinping's call to further open up China's insurance sector at the recent Boao Forum.

The Shanghai-registered asset management company will be a wholly-owned subsidiary of ICBC-AXA Life and has a registered capital of 100 million yuan (US$15.69 million), according to a statement posted on the website of ICBC-AXA Life today.

Its business scope will include managing yuan and foreign currency funds entrusted by its clients, managing and utilizing its own yuan and foreign currency funds, carrying out insurance asset management product business, and other business approved by the China Banking and Insurance Regulatory Commission and other departments of the State Council, or Cabinet.

The formation of the asset management arm will improve the investment capacity of ICBC-AXA Life and also better utilize  insurance funds to serve the country’s real economy, said Ma Jian, Party secretary and chairman of the board of directors at the insurer.

Xi proposed at the Boao Forum in Hainan last month to speed up the opening-up the insurance industry. China will relax restrictions on the establishment of foreign-funded financial institutions, expand the scope of business of foreign-funded financial institutions and broaden the scope of cooperation between the Chinese and foreign financial markets.

Shanghai-headquartered ICBC-AXA Life Insurance Company is a joint venture between the French insurance firm AXA Group, Industrial and Commercial Bank of China, and China Minmetals Corporation.