China Pacific Insurance, the country's third-largest life insurer by premium, plans to invest 5 billion yuan ($734.8 million) in Shanghai Rural Commercial Bank's (SRCB) private placement, the Shanghai Securities News reported Wednesday, citing a source familiar with the matter.
To invest in SRCB will not only generate stable profits but also broaden the sales channels of China Pacific's bancassurance business, a Reuters report said.
SRCB, founded in 2005, now has over 300 outlets. By the end of June, the bank's total assets reached 234.56 billion yuan. In 2009, it made a profit before provision of 2.76 billion yuan, according to information on its website.