(Yicai Global) Oct. 16 -- A group of Chinese logistics firms and a finance company are partnering up to form Zhongbang Logistics Insurance Co. with registered capital of CNY1 billion (USD152 million), courier firms STO Express Co. [SHE:002468] and Yunda Holding Co. [SHE:002120] said on Oct. 13.
STO, Yunda, YTO Express Co. [SHA:600233], ZTO Express Co. [NYSE:ZTO] and Jiangxin Financial Holding Group Co. will all contribute CNY160 million (USD24.3 million) to the new firm, taking 16-percent stakes in the firm. Shandong Jingjin Holding Co. and Guangzhou Baogong International Transportation Agent Co. will each contribute CNY10 million for 10-percent stakes.
There still lies uncertainty about whether or not the firm will be able to obtain an insurance license, due to increasingly tightened supervision. China's insurance sector is currently facing heated competition and massive investments. As well as couriers, internet firms are also looking to reel in cash from insurance services.
The country's logistics industry has grown rapidly in recent years, but traditional insurance companies haven't offered up products for the sector, leaving couriers themselves to provide such services.
Zhongbang Insurance's core aim will be to fulfill the needs of the logistics industry with cargo transportation insurance, vehicle insurance, property insurance, liability insurance and accident insurance.