BEIJING — China's top banking and insurance regulator has approved the establishment of a new agricultural reinsurance company to enhance financial service in the agricultural sector.

The new reinsurance company, with registration capital worth 16.1 billion yuan (about $2.34 billion), will be co-sponsored by nine institutions including the Ministry of Finance, China Reinsurance (Group) Corporation, and Agricultural Development Bank of China, according to the China Banking and Insurance Regulatory Commission.

The move is part of government efforts to boost financial services in order to support rural vitalization, which involves measures to improve the agricultural reinsurance system.

Zhu Junsheng, a researcher with the Development Research Center under the State Council, said establishing a new reinsurance company that focuses on the agricultural sector would help expand the coverage of agricultural insurance and safeguard China's agricultural production.