Recently, Shanghai Electric Insurance Co., Ltd. (a self-insurance company in the electric industry) under Shanghai Electric HONGKONG Co., Ltd. obtained an official insurance license from the Insurance Authority of Hong Kong. It is the 8th professional self-insurance company in China and the first one in the equipment manufacturing industry.

A self-insurance company, also called a self-run insurance company, is owned or controlled by a non-insurance company, which mainly provides risk protection for the parent company and its subsidiaries. The electric self-insurance company licensed by the Insurance Authority of Hong Kong mainly deals in property, engineering, freight transport, liability, employee benefits and other property insurance business. Establishing the electric self-insurance company is a critical step that Shanghai Electric HONGKONG Co., Ltd. takes to develop a comprehensive overseas platform for the industry-finance integration to meet the needs of Shanghai Electric. Prior to the self-insurance license is approved, Sun Wing International Asset Management Limited under Shanghai Electric HONGKONG Co., Ltd. has already had Type 4 and Type 9 (asset management) licenses issued by the Securities and Futures Commission of Hong Kong. Shanghai Electric HONGKONG Co., Ltd. has been working on the establishment of an asset management platform to integrate domestic and overseas resources such as financing, markets, products and customer relations as part of the Group strategy that supports overseas mergers & acquisitions and industrial cooperation.

"We aims to develop the electric self-insurance company into an insurance management platform, a risk management tool and a cost management center for Shanghai Electric," said Zhang Jie, GM of Shanghai Electric HONGKONG Co., Ltd. He also pointed out that the purpose of establishing the electric self-insurance company is to provide strong support for the Group to control risks, reduce external premiums and reduce risk costs. This is also an initiative that HONGKONG Co., Ltd. takes responding to the Group's call for industry-finance integration and a finance-driven industry. By leveraging the capital advantages, favorable policies, regulatory environment in the Hong Kong SAR, as well as its own strength in management, the self-insurance company is able to integrate resources in domestic and international reinsurance markets, provide full-cycle risk management and insurance services for the projects of the Group in the Belt and Road Initiative, and enhance the global presence of the Group.

"This year, together with the Shanghai Electric Insurance Brokers Co., Ltd., the electric self-insurance company will be responsible for the overall management, centralized transfer and cost control of the Group's insurable risks as the 'stabilizer' for the sustainable development of the Group's primary business," said Zhang Jie with full confidence in the development of the electric self-insurance company.

It is reported that to attract mainland-based enterprises to set up their own self-insurance companies in Hong Kong, the government of Hong Kong SAR revised the Inland Revenue Ordinance in July last year, introducing a series of favorable policies such as halving taxes and expanding onshore and offshore risk business for self-insurance companies. The insurance license obtained by the electric self-insurance company is the first self-insurance license issued by the Insurance Authority of Hong Kong since it replaced the former Office of the Commissioner of Insurance in 2017. This is also a testament to the presence of Shanghai Electric in the Hong Kong SAR.