GUANGZHOU, China, Sept. 28 /PRNewswire-Asia-FirstCall/ -- CNinsure
Inc. (Nasdaq: CISG), (the "Company" or "CNinsure"), a leading
independent insurance intermediary company operating in
China, today announced that it has
signed a joint venture agreement with Shanghai Puyi Investment
Consulting Co., Limited ("Shanghai Puyi") to target the wealth
management market in China.
The joint venture, to be named Fanhua Puyi Investment Management
Co., Limited ("Fanhua Puyi"), will focus on offering independent
investment research and wealth management services to both
institutions and individuals. It is expected to be established in
the fourth quarter of 2010.
According to the agreement, CNinsure will invest RMB18 million to take 19.48% equity interest in
Fanhua Puyi. The total capital will be injected in the joint
venture in installments within two years. CNinsure is entitled to
gradually increase its shareholdings in Fanhua Puyi when its
business becomes more mature.
Commenting on the event, Mr. Yinan
Hu, Chairman and CEO of CNinsure, stated, "We are delighted
to partner with Shanghai Puyi to form a new joint venture company,
which marks our expansion into the wealth management market.
China is a growing market for
wealth management services as the demand for wealth preservation
and appreciation has been surging with the growth of personal
wealth and high inflation rate. "
"With the joint venture, we will be able to leverage the
strengths of both parties, including CNinsure's sales capability
and abundant customer base and Shanghai Puyi's expertise in
research and market experience, to fully cultivate the
opportunities in the wealth management market in China."
Mr Hu continued: "The investment in Fanhua Puyi is part of the
Company's commitment to ensure a rapid and sustainable growth in
the long run and deliver long-term returns to our
shareholders."
Founded in September 2007,
Shanghai Puyi is headquartered in Shanghai and primarily engaged in the
provision of financial research and data services to various banks
and security firms and other financial institutions.
About CNinsure Inc.
CNinsure is a leading independent insurance intermediary company
operating in China. CNinsure's
distribution network reaches many of China's most economically developed regions
and affluent cities. The Company distributes a wide variety of
property and casualty and life insurance products underwritten by
both domestic and foreign insurance companies operating in
China, and provides insurance
claims adjusting service as well as other insurance-related
services.
Forward-looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. Among other things,
the management's quotations and the Business Outlook section
contain forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about CNinsure and the industry. Potential risks and
uncertainties include, but are not limited to, those relating to
CNinsure's limited operating history, especially its limited
experience in selling life insurance products, its ability to
attract and retain productive agents, especially entrepreneurial
agents, its ability to maintain existing and develop new business
relationships with insurance companies, its ability to execute its
growth strategy, its ability to adapt to the evolving regulatory
environment in the Chinese insurance industry, its ability to
compete effectively against its competitors, quarterly variations
in its operating results caused by factors beyond its control and
macroeconomic conditions in China
and their potential impact on the sales of insurance products. All
information provided in this press release is as of September 28, 2010, and CNinsure undertakes no
obligation to update any forward-looking statements to reflect
subsequent occurring events or circumstances, or to changes in its
expectations, except as may be required by law. Although CNinsure
believes that the expectations expressed in these forward-looking
statements are reasonable, it cannot assure you that its
expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the
anticipated results. Further information regarding risks and
uncertainties faced by CNinsure is included in CNinsure's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form 20-F.
SOURCE CNinsure Inc.
Copyright . 28 PR Newswire