[ET Net News Agency, 22 June 2020] AIA Group (01299) said it has received approval from
CBIRC to convert the Shanghai branch into a wholly-owned subsidiary. This is the first
foreign life insurer approved for incorporation in Mainland China.
However, J.P. Morgan does not regard this approval as a meaningful near-term stock price
catalyst, given that it is not an immediate new sales license across China. AIA will begin
the application process for separate regulatory approvals to establish branches of the
newly incorporated subsidiary in additional territories in Mainland China (for new sales),
in addition to the existing two provinces and five cities.
The research house said this suggests that the company's China expansion strategy might
be a step-by-step approach, getting extra licenses in each province instead of a national
license at one time.
Nonetheless, JPM welcomed AIA's step toward full China business expansion. It reiterated
its "overweight" rating on the stock, with a target price of HK$91. (KL)
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01299 AIA
Nominal 
54.000 +2.450 (+4.753%) Research Report
22/06/2020 11:11
{I-bank focus}AIA's steps toward full China expansion - JPM
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