LLOYD'S of London is set to open for business in Shanghai on April 16. The insurance regulator said it has given approval to Lloyd's to begin operations in China. Lloyd's Reinsurance (China) Co Ltd will be allowed to do reinsurance business in the country.

The new subsidiary will have a registered capital of 200 million yuan (US$25.64 million), the statement said. The new firm will enable Lloyd's to reinsure local currency business which now comprises nearly 90 percent of the total Chinese reinsurance market, Lloyd's said earlier.

Shanghai will boost its insurance and re-insurance sector in its five-year plan ending 2010.