Ping An to hike stake in Shenzhen bank

"Whether the regulatory framework will change or not in the future, our strategy is intended to better meet our customers' demands," Cheung said.

Under the existing regulatory framework, Ping An is striving to achieve better synergy by allowing the group company to take a stake, usually a controlling stake, of each type of financial unit.

The group said it had agreed to purchase up to 585 million new shares from Shenzhen Development Bank (SDB) for 10.7 billion yuan, or 18.26 yuan per share. It would also buy 520 million shares from the US-based TPG's Asian arm Newbridge Capital for 11.45 billion yuan by the end of 2010.

The deal, if approved by the regulators, would enable Ping An to acquire a nearly 30-percent stake in Shenzhen Development Bank, making it the largest shareholder.

SDB shares, gained nearly 10 percent to close at 22 yuan yesterday. Ping An's A shares climbed 2.28 percent to 46.13 yuan.