Tencent Holdings Ltd., a top internet services company in China, is readying the launch of HeTai Life Insurance, an online life insurer worth US$218 million. Seven other investors will join Tencent in this undertaking.
One investor, Munsun Capital Group, said in a Hong Kong stock exchange filing that it spent RMB210 million (US$30.36 million) to have a 14% stake in the soon-to-be-launched company. Munsun, Tencent, and the other investors have already signed the articles of association for HeTai.
CITIC Guoan and Beijing Easyhome Investment Holding Group were some of the other investors named in the filing. HeTai received regulatory approval in July and has one year to prepare for its launch.
Online finance in China has undergone tremendous growth over the past few years. Industry giants such as Alibaba and Tencent, as well as start-ups, have invested in the sector, which includes online insurance, peer-to-peer lending, payments, and wealth management. The rise of the industry has presented a legitimate challenge to traditional banks and insurance companies.
Tencent is also one of the companies behind ZhongAn Online Property and Casualty Insurance, along with Alibaba and Ping An. The technology-intensive insurer, valued at US$2 billion, is widely expected to go public in Hong Kong soon.
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