CHINA LIFE SELLS $3.62BN IN SHARES

China Life, the country’s leading assurer, raised $3.62bn, or 28.3bn yuan, at the end of last week as part of its yuan-denominated share sale on the Shanghai stock exchange. The sum raised was at the top end of expectations. Of the 1.5bn shares sold at 18.88yuan apiece, 10 domestic insurers bought 137.3m shares. China Life is selling 5.3% of its share capital on the domestic exchange, adding to its listing in Hong Kong. Trading in the shares is scheduled to begin on January 9. The proceeds will be used to bolster the company’s capital and possibly to finance further acquisitions. Last year the assurer bought a 20% stake in Guangdong Development Bank for 5.67bn yuan. China Life’s “H”, or foreign-currency-denominated, shares, rose 18% between December 15, when the Chinese regulator approved the domestic share sale and December 22. The “A” listed shares are expected to trade at a premium to the “H” shares, because of a shortage of insurance stocks in the Chinese market. Meanwhile, China Life P&C will introduce at least one strategic partner as soon as possible after it opens for business, reported official publication Financial News today. The new insurer, approved by the insurance regulator last month, is looking to develop a nationwide network within three to five years.