Joint Venture Entered with China CITIC

Prudential PLC
20 December 1999


Prudential  & China CITIC to form Sino-British life insurance
                     joint ventureChina

Prudential  plc  and China International Trust  &  Investment
Corporation (CITIC) have signed a memorandum of understanding
(MOU)  to form a joint venture life insurance partnership  in
Guangzhou,   China.  Subject  to  regulatory  approval,   the
establishment  of this joint venture company  will  mark  the
first Sino-British life insurance operation in China.

The  partnership  between Prudential and CITIC  combines  the
significant  resources and expertise  of  these  two  premier
financial institutions to provide life insurance products and
services in China. Prudential and CITIC will together  commit
an initial capital investment of RMB200million (£15.6 million).

The  partnership follows the announcement in  May  this  year
that Prudential was the first UK life insurance company to be
awarded  a  life insurance operating licence by  the  Chinese
government.

Mark  Tucker, Chief Executive of Prudential Corporation  Asia
said,   'Our  partnership  with  CITIC  provides   a   strong
foundation  on  which to build a substantial  life  insurance
business in China. In partnership with CITIC we look  forward
to  helping  to meet the savings and insurance needs  of  its
people.  China will be a very important part of  Prudential's
portfolio in Asia and the establishment of this new operation
underscores once again Prudential's confidence and  long-term
commitment to the region. '

Mr.  Chang Zhen-ming, Executive Vice President of CITIC said,
'We   at   CITIC  are  delighted  to  form  a  joint  venture
partnership   with   Prudential.  With  CITIC's   established
background  and  expertise in financial  services,  including
banking, securities and a trust business, our entry into  the
life  insurance market will enable us to provide a  full  and
comprehensive  range of financial products and  services  for
our customers'.

Prudential  and  CITIC  will  jointly  submit  to  the  China
Insurance Regulatory Commission (CIRC) detailed business  and
marketing  proposals  for  the launch  of  a  range  of  life
insurance  products and services.  Prudential and CITIC  hope
to launch the new operation in Guangzhou around the middle of
Year 2000.


For further information contact:

Media     Jeremy Reynolds          020 7548 3721
Analysts  Carys Walsh              020 7548 3823


Notes to editors

1.   Prudential is the UK's largest life insurance company in
     Asia with offices in ten countries/areas and a network of
     over  19,000  agents and staff. The launch of  the  life
     insurance  joint  venture company in  China  will  bring
     Prudential's significant Asian portfolio to eleven, which
     already includes Hong Kong SAR, Singapore, Malaysia, the
     Philippines, Thailand, India, Indonesia, Vietnam, Taiwan and
     Japan.

2.   Prudential  has  five representative  offices  in  China
     (Guangzhou,  Beijing, Shanghai, Tianjin  and  Shenyang.)
     and  has  been  very  active in  supporting  investment,
     educational, training and cultural initiatives there for
     over ten years.

3.   The China Insurance Regulatory Commission (CIRC) was
     formed in 1998 by the PRC Government.  It has a mandate
     from the State Council to regulate and supervise the
     development of the insurance industry in China.   It is
     also responsible for formulating industry policy,
     enforcing laws and regulations that relate to insurance
     matters, disciplining misconduct and issuing insurance
     licences.  Since 1992, selected foreign insurance
     companies with financial resources and product expertise
     have been invited to enter China's insurance market.
     The current policy permits foreign life insurers to
     operate in the form of a joint venture partnership with
     a Chinese corporation in the cities of Shanghai and
     Guangzhou.


4.   Established in 1979, CITIC (China International Trust  &
     Investment  Corporation)  is  a  state-owned  enterprise
     formed  under the direct leadership of the State Council
     of  the  People's Republic of China.  CITIC is  actively
     involved  in  the  field  of  finance,  investment   and
     services.  To  date,  CITIC's assets  totalled  RMB224.5
     billion (USD28 billion).