Tencent Holdings Ltd will set up China's first Internet-based life insurance company with State-run firm CITIC Guoan Group, according to a report in Shanghai Securities News.

The new company is positioned to be an innovative and light-asset online insurance firm, and may become the country's first Internet life insurance company if approved.

Tencent and CITIC Guoan will hold identical stakes in the joint venture. The other shareholders include private enterprises such as Shandong Sanxing Group and Beijing Easy Home. The actual shareholding pattern for the joint venture is yet to be disclosed.