GUANGZHOU, China, Sept. 28 /PRNewswire-Asia/ -- 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.
