People’s Insurance Company of China (PICC) has proposed to sell all its 40 percent stake in loss-making Donghai Marine Insurance to two Ningbo-based investment firms.
Under the proposal, PICC will sell 30 percent and 10 percent equity share in Donghai Marine Insurance to Ningbo Jinjiang Investment and state-run Ningbo Development Investment Group respectively.
Following completion of the deal, Ningbo Jinjiang and Ningbo Development Investment will each hold 30 percent of Donghai Marine Insurance, while Ningbo Zhoushan Port and Shanghai International Port Group (SIPG) still hold 20 percent each.
Donghai Marine Insurance was established by the end of 2015 and the company has been suffering losses for four consecutive years since establishment.
