The People's Insurance Company (Group) of China plans to pay 862 million yuan (US$127 million) for a 55 percent stake in China Huawen Investment Holdings Co to gain access to potentially lucrative financial assets.
  PICC, parent of China's biggest property insurer, will buy new shares valued at 562 million yuan and pay 300 million yuan to buy existing stocks owned by the People's Daily in China Huawen, according to a statement unveiled yesterday.
  The deal will be done through PICC Investment Holding Co and the registered capital of China Huawen will be boosted to 1.2 billion yuan after the transaction, according to the statement.
  Shanghai New Huangpu Real Estate Co, 14.4 percent held by China Huawen, owns controlling stakes in three Chinese mainland futures brokers as well as a 6 percent interest in AJ Securities Co.

"PICC is expected to have exposure to financial assets with rosy growth potential," said Wu Zhiguo, a Guohai Securities Co analyst. "But it may take some time for it to consolidate those assets."
  PICC has been stepping up efforts to transfer itself into a financial shareholding group to compete with arch rivals China Life Insurance and Ping An Insurance in non-insurance businesses. PICC Investment has already filed an application with China's stock regulator to buy a stake in Qilu Securities Co, the China Business News reported yesterday.
  The Beijing-based insurer agreed in November to acquire a 4.62 percent stake in Qilu Securities, the newspapers said. PICC is also seeking to participate in the capital expansion of Anxin Securities Co, the paper said.