Shin Kong sees 30 mln yuan premiums from China JV this yr

* Shin Kong sees China jv insurance premium at 30 mln yuan

* To raise China jv staff to 120 at year-end from 80 now

* Shares surge by 7-percent daily limit, outpaces big board

TAIPEI, May 19 (Reuters) - Shin Kong, parent of Taiwan's No. 3 life insurer, said on Tuesday it expects 30 million Chinese yuan ($4.4 million) of insurance premiums this year as it opens business in China.

Shin Kong Financial (2888.TW), whose tie-up with Hainan Air (900945.SS) (600221.SS) began operations in China last month, plans to boost staff to 120 there from 80 now, an official told investors in a conference call. He did not elaborate.

Shin Kong and other local rivals, hit by the global financial crisis, are pinning their hopes on the huge mainland market after Taipei and Beijing pledged to open their financial markets to each other amid growing trade ties.

Both sides recently signed a financial deal, paving the way for them to sign a memorandum of understanding (MOU) on financial supervision in the near future, prompting a 76 percent rally in Taiwan's financial shares .TFNI since a recent low on March 2.

Shares of Shin Kong advanced by the 7-percent daily limit to end at T$15.35 on Tuesday, beating the main index's .TWII 1.2 percent gain.

Taishin Financial (2887.TW), whose major investors included private equity firm Newbridge Capital [NB.UL], said last week it was in talks with more than five Chinese banks on strategic alliances. [ID:nTP69397]

Investors were also betting that outlook of the island's financial firms would soon improve as the global recession eases. Shin Kong swung to a net profit of T$3.59 billion ($109.1 million) in the first four months of this year, as it shed land assets to offset the T$22.2 billion in net losses for the entire 2008.

The company said in April it was planning to raise funds via a rights issue, selling up to 2 billion shares, worth T$3.07 billion based on Tuesday's closing price. [ID:nTP125589] ($1 = T$32.9 = 6.8248 yuan) (Reporting by Faith Hung, Editing by Jacqueline Wong)