The official signing ceremony to establish AVIC Groupama Property Insurance Company in Chengdu, a joint venture between two of the Fortune Global 500 corporations -- Aviation Industry Corporation of China (AVIC) and Groupama Group in Chengdu – was held in Chengdu Century City at the New International Convention & Exhibition Center. It is the second insurance institution with a corporate status settled in Chengdu after Jintai Property Insurance Co, Ltd.

AVIC Groupama Property Insurance Company was established with the joint capitals of AVIC and French Groupama Group. This June, the China Insurance Regulatory Commission (CIRC) formally approved the application of French Groupama for a change of registered capital. Through capital increase and the assignment of 50 percent of its stock equity to AVIC at a price of 250 million yuan, the registered capital moved up to 500 million yuan from 250 million yuan and Groupama China was converted into a Sino-foreign joint venture insurance company - AVIC Groupama Property Insurance Company. Its main business covers agricultural insurance, general commercial insurance, aviation insurance, and the insurance of AVIC and other large enterprises.

The joint venture insurance company has solid financial strength. AVIC is a Fortune Global 500 corporation, a world famous comprehensive aviation industry group and a key developer and supplier of aviation high technology, aircraft leasing and engineering contracting. AVIC ranked 330th among the Fortune Global 500 corporations in 2010. Its subordinate, AVIC Capital Co, Ltd, owns all kinds of licenses for financial enterprises such as licenses for banks, securities companies, trust companies, lease companies, futures companies, financial companies and industrial investment funds. It is one of the few financial holding companies holding that variation of licenses in China. French Groupama,,the largest agricultural insurance company in France, has 100 years of business experience and ranked 323rd among the Fortune Global 500 corporations in 2010. AVIC and French Groupama have been cooperating with Chengdu for many years, making Chengdu an ideal place to register. Choosing Chengdu reflects the companies' confidence in developing an insurance market and their recognition of the business environment in Chengdu. The company will inject new vitality to the development of the economy and financial industry of Chengdu, particularly to the development of a financial center in China's western region.

"AVIC enjoys a long history of friendly cooperation with Chengdu," said Gu Huizhong, deputy general manager of AVIC and board chairman of AVIC Capital Co, Ltd, at the contract signing ceremony. "This cooperation will extend the situation of mutual complement, mutual benefit and co-prosperity." Gu expressed the settlement of the headquarters of AVIC Groupama Property Insurance Company in Chengdu will facilitate AVIC to provide more services for citizens, further improve the industrial layout of the company and tally with the strategy of Chengdu for shaping itself into a financial center of the western region. He hopes through cooperation with Chengdu, the newly established AVIC Groupama Property Insurance Company can grow into a high-end property insurance company with the most brand influence in China, or even in the world.

According to the introduction, in the recent years, Chengdu has attached importance to the cultivation of the financial industry as a pillar industry for the city, kept improving its financial institution system, enhanced market functions and optimized financial environment. As a result, a great headway has been made in the financial sector. Chengdu now has the most financial institutions with the most complete varieties, the large market scale and the highest degree of opening in the central and western regions.

According to the development plan for the financial industry, by 2012, Chengdu will become a center for financial institutions, a financial innovation and market transaction center and a financial service center for the western region. On this basis, by 2015, Chengdu will preliminary become a financial center for the western region. Insiders believe Chengdu has established financial adhesion and radiation to the central and western regions in the course of shaping itself into a financial center for the western region. This will attract more insurance institutions, particularly foreign insurance companies, to establish regional headquarters, even Chinese headquarters in Chengdu. Chengdu possesses the basic conditions for an insurance headquarters base.