BNP Paribas meets hurdle in China insurance plan

SHANGHAI, June 26 (Reuters) - BNP Paribas SA (BNPP.PA: Quote, Profile, Research) faces a regulatory hurdle in proceeding with its plan to establish an insurance joint venture with Shanghai Pudong Development Bank (600000.SS: Quote, Profile, Research), a senior BNP Paribas executive said on Thursday.

"The project is not bad, but the regulations are not that clear and we hope to make some progress soon," Mignonne Cheng, head of North Asian operations for the BNP Paribas group, told Reuters.

The French bank has signed a memorandum of understanding to set up a Chinese insurance venture with Pudong Bank, but there are difficulties with the rules allowing Chinese banks to form partnerships with foreign banks in the insurance sector, Cheng said.

She also said the French bank was talking to several Chinese brokerages about establishing a securities joint venture in China. (Reporting by George Chen; Writing by Andrew Torchia; Editing by Edmund Klamann)