CHINA LIFE TAKES STAKE IN TRUST FIRM

The country’s largest life insurer China Life is to acquire a controlling stake in China Credit Trust, a domestic trust firm and part-owner of a fund manager, according to a Reuters report. China Credit Trust was founded over 10 years ago by a number of coal-related firms and is currently the biggest shareholder in China’s largest investment manager, Harvest Fund Management, marking China Life’s intention to boost its asset management arm. The respective boards of the two companies have reportedly settled on an agreement for the sale of a stake in excess of 50% and the deal is in the process of implementation. The sale will involve an initial payment of approximately 1.5bn yuan with plans for China Life to increase its stake in the future. The life insurer is still to decide whether the funds will come from the parent company, China Life Insurance Group or its listed subsidiary China Life Insurance Company.