CHINA'S two biggest insurers have received regulatory approval to pay a combined 10.9 billion yuan (US$1.42 billion) for shares in China Minsheng Banking Corp.

China Life Insurance Co (stock code:601628) and Ping An Insurance (Group) Co(stock code: 601318), are each buying 5.45 billion yuan of Minsheng Bank shares, the Beijing-based bank said in a statement to the Shanghai Stock Exchange yesterday. The purchase will enable each insurer to own 4.93 percent of the country's sole privately controlled bank, the statement said.

Shenzhen-based Ping An's stake will be subject to a lock-up period of 12 months, and Beijing-based China Life's shares must be held for 26 months, the statement said.

Chinese authorities are encouraging big insurers to become universal financial providers to better fight rivals such as HSBC and Citigroup.

China started allowing insurers to purchase stakes in commercial banks in 2005, prompting big insurers including Ping An and China Life to go on buying sprees for lenders.

Ping An is seeking to obtain two-thirds of its revenue from banking, securities and asset management.

Ping An now owns 89 percent of Shenzhen Commercial Bank and 4.94 percent of Shanghai Pudong Development Bank Co. HSBC Holdings Plc said in February that Ping An was buying its 27 percent stake in subsidiary Ping An Bank.

China Life picked up 20 percent of Guangdong Development Bank for 5.67 billion yuan, gaining access to 500 banking outlets nationwide to sell its insurance and investment products.