The injection could raise China Ping An Trust & Investment's registered capital to 4.2 billion yuan from 2.7 billion yuan, said the insurer's spokesman Sheng Ruisheng Tuesday.

Ping An Trust, a 99.52 percent- owned subsidiary of the insurer, plans to use one-third of the fund, or 500 million yuan, to increase its stake in Ping An Securities to 86.2 percent from 80.8 percent, Sheng said. Ping An Securities' registered capital will be raised to 1.8 billion yuan after the deal.

ADVERTISEMENT

Earlier this year, Pin An Trust injected 300 million yuan into the securities firm, which bolstered the unit's registered capital to 1.3 billion yuan and increased its stake to 80.2 percent from 75 percent.

The remaining one billion yuan will be used for the development of more new trust products and services, and for general working capital, Sheng said. The capital injection will not have any adverse impact on the company as Ping An has "plenty of cash," he added.

As at June 30 this year, Ping An had cash and cash equivalents amounting to 19.36 billion yuan.

Ping An, led by chairman Peter Ma, aims to expand its banking, securities, trust and asset management businesses to transform itself into an integrated financial service provider.

The Shenzhen-based insurer, which has 7 percent of China's individual clients in financial services, earns less than 3 percent of the total profit in the industry, Ma said earlier.

Ping An Trust mainly provides trust services, including short-term stock trading, equity investment funds and bonds, long-term equity investments, property leasing and managing assets.