OREANDA-NEWS. August 19, 2013. Industrial Bank (IB) entered into an overall business operation agreement with People's Insurance Company (Group) of China Limited (PICC) and its subsidiaries including PICC P&C, PICC Asset, PICC Life, and PICC Health, and both parties will carry out all-round cooperation in the following business areas: agency insurance, bank deposit, financing and assets management, assets custody, insurance guarantee, corporate annuity, employee benefit plan, cash management, e-business, and bank card.

This cooperation, which was reached under the background that PICC and its subsidiaries held the shares of IB at the end of 2012 and become the second largest shareholder of IB in parallel with Hang Seng Bank Limited, is the extended and furthered equity cooperation between both parties and also a mighty act of IB to further intensify the strategic cooperation with institutional shareholders, fully share their advantageous resources, and achieve frog-leap development.

IB indicates that, as a famous insurance finance group in China, PICC engages in many business fields such as insurance, trust, fund, and asset management, and have obvious complementary and synergetic effects with the bank in terms of funds, channel and business. The execution of this overall business cooperation agreement is helpful for IB to further improve its capability to provide comprehensive financial services and extend the pattern of diversified business operation under the long-term trends: financial disintermediation, diversified assets allocation of residents and market-oriented interest rates.

It is reported that, in order to drive the implementation of cooperation, both parties have established a multi-layered communication and negotiation mechanisms, such as regular meeting between senior executives of both parties, head office led coordination, and close connection between grass-root organizations. In addition, to serve “Agriculture, Rural Area and Farmers”, both parties also made a special agreement on financial services to the rural market. both parties will exert the resource advantages of IB's bank-bank platform and jointly provide high-quality financial services for the rural area.