Shares in insurer rocket after deal
(Shanghai Daily)Updated: 2007-06-22 09:17
Shares of China Life Insurance Co surged by close to their 10 percent
daily limit in Shanghai yesterday after its asset management affiliate struck a
partnership to invest in the country's property market.The yuan-backed shares of China Life soared 8.25 percent yesterday to 43.42 yuan (US$5.70) in Shanghai while its Hong Kong-traded stock climbed 6.34 percent to HK$28.50 (US$3.65).
China Life Asset Management Co, which oversees the Beijing-based insurer's investments, said on Wednesday it formed a partnership with United States private equity firm Aetos Capital LLC to evaluate investment opportunities in China's real estate market. The partnership "will consider a wide range of asset types including office, residential, industrial, retail, hotel and mixed-use properties," the companies said in a release.
China Life will offer consultant services to Aetos in the tie-up.
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The Chinese regulator is expanding the investment vehicles for insurers from bank deposits, bonds to the stock and infrastructure market.
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