JD Capital Further Implements Its Strategic Layout by Fully Launching Insurance Businesses


JD Capital (430719.OC) announced on August 14 that it would, through its subsidiary, initiate a mutual insurance organization tentatively named Zhonghui Property Mutual Insurance Head Office (hereinafter referred to as Zhonghui Insurance); meanwhile, it would purchase the entire Zhongjie Insurance Brokerage Co., Ltd. (hereinafter referred to as Zhongjie Insurance).

Prior to this announcement, JD Capital once announced in July that it was planning to initiate a life-insurance company with other six companies. As of now, JD Capital has fully launched the strategic layout of its insurance business.

Insurance as a long-term strategic business

The insurance industry has a promising prospect in China, with rapid development and enormous potential. Therefore, JD Capital takes insurance as its long-term strategic business. The issuance of policies like “Guiding Opinions of the State Council on the Development of the Insurance Industry” offers more room for the development of insurance business, which is of great significance for China’s future economic transformation and upgrading.

Among these policies, mutual insurance organizations are indispensable to further reform and development in insurance industry.The issuance of “Several Opinions of the State Council on Accelerating the Development of the Modern Insurance Service Industry” and the “Pilot Measures for Mutual Insurance Organization Supervision” also creates favorable conditions for the development of mutual insurance. JD Capital's co-establishment of Zhonghui Insurance not only conforms to the national development strategy of financial inclusion, but attracts and maintains long-term premium customers, brings in stable revenue, and contributes to the company’s sustainable development through its strategic relations with new-type insurance organizations.

Meanwhile, with its acquisition of Zhongjie Insurance, JD Capital’s insurance business will cover brokerage, insurance consultation and services, as well as financial services such as online brokerage and online insurance consultation.

Integrated structure of asset management is in place

Currently, the Chinese insurance market sees an increase in the spectrum of products, channels of capital application, investment return, and asset management level, which indicates huge development potential in the whole industry.

Following the establishment of the public fund management companies and the acquisition of securities companies, its inclusion of the insurance business marks the basic completion of JD Capital’s layout of the integrated asset management organizations. Its insurance business and other asset management and financial businesses will complement and collaborate with each other, thus generating most benefits. In the future, JD Capital will make the best of its strong suits of integrated asset management to enhance its competitive edge, create value for customers, and contribute to the development of the insurance industry.