A China Life executive has confirmed the company is to have its shares traded on the Shanghai stock exchange following the imminent listing of the Industrial and Commercial Bank of China (ICBC).
The underwriters are expected to be the China International Capital Corp. (CICC), CITIC Securities and Galaxy Securities, Liu Lefei, chief investment officer of China Life, told the press Tuesday.
China's biggest life insurer planned to raise up to 20 billion yuan (US$2.5 billion) in the renminbi-denominated A-share offering, accounting for about 5.3 percent of its enlarged equities. The company now has shares traded in both Hong Kong and New York.
The ICBC, China's biggest lender, is believed to be preparing to list in Hong Kong and Shanghai later next month, but no exact date has been announced.
China Life president Yang Chao said the government had approved the establishment of a property and casualty arm and preparations were well underway.
The insurer posted first-half investment yields of 2.12 percent. Yang said the good earnings largely resulted from the bullish stock market which accumulatively rose by 49 percent.
But with little room for the stock market to rise in the second half, earnings from stock investment would drop, said Yang, adding that the company was planning to adjust its investment portfolio correspondingly.
(Xinhua News Agency September 6, 2006)
