More than 40 Chinese insurance companies and asset managers have jointly started an investment firm, raising 40 billion yuan ($6 billion) for a first fund to finance energy and infrastructure projects overseas, China's insurance regulator said.
The new firm, China Insurance Investment Ltd, will boost China's energy security by directing part of its first fund to finance Russia's $27 billion Yamal liquefied natural gas (LNG) project, the China Insurance Regulatory Commission (CIRC) said in an online statement posted on Monday, without providing any details.
Yamal LNG, due to start production of liquefied natural gas in 2017, should consist of three lines with a capacity of 5.5 million tons a year each.
China's Silk Road Fund has already provided 700 million euros ($752.64 million) to Yamal LNG and obtained a 9.9 percent stake in the project. Chinese lenders are also set to provide $12 billion in credit.
China Insurance Investment Ltd, headquartered in the Shanghai free trade zone, was launched by 46 Chinese corporate shareholders, comprising 27 insurance companies, 15 insurance asset management companies and four private companies. The shareholders each have a stake of less than 4 percent.
The new investment vehicle has 1.2 billion yuan in registered capital and will acquire overseas assets, including stake purchases, the CIRC said.
