OREANDA-NEWS. February 28, 2011. Agricultural Bank of China Limited (ABC) and Jiahe Life Insurance Co., Ltd. (Jiahe Life) held the signing ceremony for ABC's capital increase to Jiahe Life to become its shareholder. Mr. Xiang Junbo, Chairman of ABC, Mr. Zhang Yun, Vice Chairman and President of ABC, Mr. Ma Mingjia, Chairman of Jiahe Life, Mr. He Linxiang, Director of Jiahe Life, and former shareholders' representatives of Jiahe Life attended the ceremony. Mr. Pan Gongsheng, Vice President of ABC, and Mr. Lai Guanrong, General Manager of Jiahe Life, signed the agreement on behalf of both sides, reported the press-centre of ABC.

Under the agreement, ABC will hold 51% stake of Jiahe Life, becoming the controlling shareholder. Shares held by the former five shareholders of Jiahe Life accounted for 49% of the total, with 9.8% respectively. The transaction still subjects to regulatory approval.

Mr. Xiang Junbo said in his speech that ABC had become a large commercial bank covering both urban and rural areas and offering wide-ranging services after sixty years' development. Featuring excellent performance and advanced management, ABC has the widest branch coverage in China, the largest electronic network and the most extensive customer base. In 2010, the premium of insurance agency sales by ABC exceeded RMB100 billion, achieving agency premium fee income of more than RMB4.3 billion and wining the honors of "Best Insurance Agency Bank in China" and "Most Influential Brand in Chinese Agency Insurance Market". The act of controlling Jiahe Life would further improve the business platform of ABC, optimize its revenue structure, enrich the range of financial services and make it be able to better serve "Sannong" (agriculture, rural areas and farmers). Moreover, ABC could make use of the tremendous growth potential in Chinese life insurance market to bring up new profit growth points, and thus optimize resource allocation and achieve sustainable development.

Mr. Xiang Junbo stressed that ABC would perform its duties as a shareholder, actively develop and enhance the values of Jiahe Life together with other shareholders. Meanwhile, ABC would maintain the stability of the management team and staff in Jiahe Life, create development opportunities for employees, and strive to achieve common growth in the interests of the company, the employees and shareholders.

Mr. Ma Mingjia said that Jiahe Life was established five years ago, it kept expanding business and enhancing product quality by adhering to the ideology of honest and steady operation and had achieved excellent operating performance. As ABC becomes the controlling shareholder of Jiahe Life, the strong capital strength and extensive outlets of ABC together with the solid foundation and strong development momentum of Jiahe Life can bring out the best for each other.

In recent years, ABC has built up various business platforms which including investment banks, funds and leasing. After the transaction is approved, ABC will provide a good development platform for Jiahe Life by virtue of its extensive outlets and customers.