China Life Insurance and 10 other state-owned life insurers, together with one state-owned fund manager, have established a massive equity investment fund worth CNY33.9 billion ($4.9 billion).
The fund’s purpose may serve to dispose of financial institutions’ risks, according to a report by the Securities Times on April 24.
Aside from China Life Insurance, other insurers who have invested in the fund include China Pacific Life Insurance, Taiping Life Insurance, and PICC Life Insurance, among others.
The fund was founded on April 20 in Beijing, as reported by business information platform Tiayancha. However, the size of its funding was not disclosed.
According to industry insiders, insurers often set up equity funds to boost their stock investments.
However, they noted that it is rare for a fund to be of this size and involve more than 10 insurers. The experts believe that the fund may have some special purpose, given its size and the number of insurers involved.
The establishment of this equity investment fund is another indication of China’s efforts to boost its economy and support its financial institutions.
As the country’s economic growth continues to recover from the impact of the COVID-19 pandemic, the fund could help address any potential risks that financial institutions may face.
China Life Insurance is a state-owned insurance company in China, and it is the largest life insurer in the country. It was founded in 1949 and is headquartered in Beijing.
The company offers a wide range of insurance and financial products and services, including life insurance, health insurance, accident insurance, annuities, and asset management.
China Life Insurance operates through a network of branches and subsidiaries across China and has expanded its presence internationally with operations in North America, Europe, and Asia. As a state-owned enterprise, China Life Insurance plays a significant role in China’s financial and insurance industries and is a major contributor to the country’s economy. – InsuranceNewsAsia.com