The Commonwealth Bank of Australia (CBA) has announced a new life joint venture partnership in China after regulators allowed the first local bank to enter the market.

The launch of the Shanghai-based joint venture follows approval for China’s Bank of Communications (BOC) to take over a 51% share in the venture previously held by China Life.

The venture has been renamed BoCommLife Insurance Company, replacing its previous title of China Life CMG. CBA’s involvement in the business spans a decade.

CBA anticipates strong growth prospects for the venture. Its partner is the fifth-largest bank in China, with 2600 outlets in 143 cities.

“We intend to help grow the business nationally by tapping into BOC’s resources and its enormous distribution network,” says Simon Blair, CBA Group Executive International Financial Services.

“Our goal is to create a leading and competitive life insurer that covers the national China market.”

However, CBA may be forced to sell part of its existing 49% stake in the venture because BOC is 19% controlled by UK banking conglomerate HSBC Holdings. Under Chinese foreign investment rules, foreign ownership of joint venture vehicles is restricted to 49%. CBA is understood to be negotiating with Chinese regulators to determine its maximum allowable investment.