China’s top reinsurer plans for USD3 bn IPO

China Reinsurance (Group) Corp. has received approval from the Hong Kong stock exchange to hold an initial public offering worth a combined USD3 billion, according to sources, signaling a possible revival of what has been a quiet quarter for the city's capital market.

China Reinsurance, is yet to decide when to go public due to volatile stock markets, though they are aiming to do so this year. China Re plans to raise USD2 billion.

The IPOs would be among the first major offering since China Railway Signal & Communication Corp.'s USD1.4 billion Hong Kong IPO in August.

China Re, whose businesses include life reinsurance and wealth management, has a near monopoly on the domestic reinsurance market. China is also home to a number of smaller domestic firms and global reinsurers, including Munich Re AG, the world's biggest reinsurer by premium income, and Zurich-based reinsurer Swiss Re AG. The state-owned China Re has hired China International Capital Corp., UBS Group AG and HSBC Holdings PLC to handle the listing, according to its primary listing prospectus.