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Shanghai has taken a major step toward achieving its dream of becoming a global maritime centre by 2020 with the launch of China's first homegrown shipping-insurance service.
In March, the State Council revealed plans to transform the city into a global financial and shipping hub in the next 10 years.
But the target for Shanghai to compete with London as a fulcrum for finance, legal and shipping-related services depends heavily on it shedding its image as a traditional port beset by grasping modern maritime practices.
Shanghai-based China Pacific Insurance (Group) Co (CPIC) recently launched its shipping-insurance department that will cover financial losses suffered by owners.
China's third-largest general insurer, it is not the only one providing insurance to shipping players in the country but is the first to have set up a specialist maritime arm.
It took in CNY 1.65bn ($242m) in premiums in 2008, accounting for 15% of the market.
CPIC president Gao Guofu predicts that it will more than double its 2008 profit this year to CNY 6.5bn.
The insurer this week launched an initial public offering (IPO) in Hong Kong to raise up to HKD 25.93bn ($3.34bn) CPIC listed on the Shanghai Stock Exchange in 2007 and had intended to enter the Hong Kong market in 2008. However, its plans had to be postponed due to the economic downturn.
Source: Tradewinds Author: Neil Connor Shanghai |
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