China has injected $4 billion into China Reinsurance (Group) Co., the nation's former monopoly reinsurance provider, paving the way for an initial public offering. The money came from Central Huijin Investment Co., the central bank's investment arm, the China Insurance Regulatory Commission said.

The next step is that China Reinsurance will start a new round of restructuring. This will have a significant impact on the development of the entire Chinese insurance industry.

China Re is bolstering capital and preparing to compete with overseas reinsurers, including Swiss Reinsurance Co. and Munich Re, after its monopoly status was removed in December 2005. It could become the second insurer traded on the mainland, giving investors another option to capitalize on an industry that grew more than 14 percent last year.

The China Insurance Regulatory Commission supports insurers selling shares in both domestic and overseas markets. China Re in 2003 reorganized into four units: property insurance, life reinsurance, property reinsurance and asset management. Revenue rose 12.8 percent to 12.57 billion yuan in the first half of last year, with total assets of 29.77 billion yuan, according to the company's Web site. The company controls about 90 percent of the reinsurance market, China Daily reported in September.

China's insurance market grew 14.4 percent to 564.1 billion yuan ($73 billion) last year. Total assets of insurers rose 29 percent to 1.97 trillion yuan.

Currently the only insurer traded on the mainland is China Life Insurance Co., whose shares more than doubled to 38.93 yuan on their Jan. 9 debut. China Life first sold shares in 2003 in Hong Kong and New York. Its Hong Kong stock gained 288 percent last year.