Preparations are under way to set up China's first cross-straits life insurance joint venture with the approval of China Insurance Regulatory Commission, according to Cao Jianxiong, vice-president of China Eastern Air Holding Company on Tuesday.

The new life insurance company is expected to be based in Shanghai with 800 million yuan (about 96.4 million US dollars) of registered capital.

China Eastern Air Holding Company based in Shanghai and Cathay Life Insurance Co., Ltd. based in China's Taiwan province will hold the stocks half by half.

As the largest life insurer in China's Taiwan province, Cathay Life Insurance Co., Ltd. covers a market share of 33 percent in Taiwan.

China Eastern Air Holding Company, one of China's three major air groups, now possesses approximately 200 aeroplanes operating on domestic and overseas air routes.