(Yicai) Nov. 6 -- China has approved the setting up of a joint venture property and casualty insurer by BNP Paribas Cardif, Xiaomi, and Volkswagen, marking an increase in foreign involvement in the country’s insurance market.

The respective stakes the three partners have in Beijing BNP Paribas Tianxing Property & Casualty Insurance was not disclosed in the approval document released yesterday by the National Financial Regulatory Administration.

BNP Paribas Cardif is part of Paris-based BNP Paribas. Xiaomi’s stake in the new JV is held through a tech affiliate incorporated in China’s Sichuan province, and Volkswagen’s stake is owned via a financial services affiliate in the country.

During the setup process, to be completed within one year from Oct. 17, the new insurer must strictly abide by the relevant laws and regulations, the NFRA said.

The NFRA gave the go-ahead to BNP Paribas Cardif and Volkswagen's financial services affiliate to jointly form the new insurance company in the Chinese capital, Li Yunze, the regulator’s director general, said on Oct. 18.

The NFRA also approved Prudential Financial to set up an insurance asset management firm in Beijing, Li said on the same day.

BNP Paribas Cardif and Bank of Beijing formed BOB-Cardif Life Insurance, a 50-50 insurance JV, in China in 2002.

Editor: Tom Litting