Guohua Life Insurance opened in Shanghai today to tap the country's rising need for financial protection.

 

The Shanghai-based life insurer has registered capital of 300 million yuan (US$40.5 million).

 

The insurer got the go-ahead from the China Insurance Regulatory Commission to start business in October.

 

Hubei Biocause Pharmaceutical Co, a Shenzhen-listed drug maker, holds a 19.99 percent stake in Guohua Life as its biggest shareholder.

 

Biocause invested 59.97 million yuan in the life insurer.

 

Shanghai is gearing up to be an international financial hub and is already home to big name financial players from the banking, insurance and securities sectors.

 

Life insurance premiums topped 29.27 billion yuan in the first ten months in Shanghai, up 16 percent from a year ago.

 

At the end of October, there were 33 life insurance companies in Shanghai.

 

(Shanghai Daily November 26, 2007)