The proposed insurance exchange in Shanghai, China may open for business next month after 91 companies recently agreed to jointly contribute the required registered capital worth 2.24bn yuan (US$34mn).
Founding members met for the first time last week and discussed the development of the insurance exchange, Shanghai Daily
According to the report, the founding members include a majority of insurance companies, their subsidiaries and about 20 firms from other sectors such as the Shanghai International Group and the investment arm of Fosun Group.
Each company has agreed to hold between 5 and 30mn shares in the exchange to meet the registered capital requirement, the report said.
In April, the Shanghai branch of the China Insurance Regulatory Commission said that the State Council has approved the formation of the exchange.
said the exchange aims to align local companies with global insurance practices and upgrade the city’s insurance infrastructure to make it an international financial centre by 2020.
It will provide trading facilities and services for re/insurance assets while supporting the operation of brokerages, consulting companies, training organizations and financial information companies.