Florida-based Genesis Technology Group, Inc. (GETC) has announced the signing of an agreement with Shanghai Dongda Insurance Brokers Company, Limited (Dongda) in Shanghai, China, that provides for GTEC to represent Dongda in locating a major U.S. insurance brokerage firm and to negotiate and construct a joint venture in Shanghai.
“Dongda will be working to underwrite insurance policies for any foreign investments in China that are introduced by GTEC,” said the announcement. In addition the Chinese firm will work with one of GTEC’s clients, Mark Capital Management, Inc., of Chicago, Illinois, “in order to launch a mutual fund with a guaranteed principle and an established minimum return with one of China’s top mutual funds.”
“From my recent visit to Shanghai, the gleaming metropolis of newly built skyscrapers, exhibition halls, and entertainment venues stands as a testament to the city’s modernization as it becomes the epicenter of finance and commerce, once again, in Asia. We are excited about this agreement, because GTEC becomes the first Western Company able to insure any foreign investments in terms of political, regulation, and intellectual protection risks,” stated Gary Wolfson, GTEC CEO.
“With this relationship, GTEC will be able to help major US financial and insurance companies to penetrate this multi-billion dollar Chinese industry, while greatly minimizing risk,” he continued. ” We will be working with another GTEC client, Kane, Laduzinsky & Mendoza, Ltd., to help form this joint venture with a major US insurance company as a partner in China. The formation of a joint venture with a Chinese insurance company is the best way to enter the most attractive new insurance market in the world,”
Dongda Chairman Zhang Jinbao commented: “We are very fortunate to retain Genesis’s services and partnership commitment. Each year, we handle billions of dollars in business, but our limited resources and network have limited our expansion abilities for significant business growth in the coming years. Shanghai is undergoing a major infrastructure building cycle in the next eight years. We want to be well positioned to take advantage of this unparalleled business boom. One of our major business goals in the near future is to form a joint venture with a major U.S. insurance company. We believe we can bring hundreds of millions of dollars in business to this new joint venture in the near future.”
The bulletin noted that “In 2001 foreign insurers gained $387 U.S. million in insurance premiums in China, 1.55 percent of China’s total. Premium income totaled $38 U.S. billion in 2002 in China, up 44.7 percent over the previous year and topping the last few years.” It also indicated that “China’s insurance industry has opened remarkably since the WTO entry in November 2001. In the past year, a number of new companies have entered China’s insurance market, including six foreign insurance firms who received approval to open business institutions and 15 foreign-funded companies that recently began operations.”
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