Goldman Sachs lowers price of China Life

Wed. September 24, 2008; Posted: 06:01 AM

HONG KONG, Sep 24, 2008 (Xinhua via COMTEX) -- LFC | Quote | Chart | News | PowerRating -- Goldman Sachs lowered target price of China Life by 8 percent to 34 HK dollars per share on Sept. 23, over concerns that the insurance company's loss in stock market may increase.

But it maintained the rating of the insurer at "neutral".

Goldman Sachs says Chinese insurance stocks may rally in the near future because of the governmental bailout plans in both China and the US. But due to the cyclicality of insurance industry and insurance companies high dependence on stock market for profit, losses to be written into financial reports are expected to widen, says Goldman Sachs.

Risks still exist for the company's Q4 and 2009 profit-making ability, but if the Chinese economy can manage a soft landing and stock market hit bottom, China Life's price may face upward chances in the short term.

For full details on China Life Insurance Company Limited ADS (LFC) click here. China Life Insurance Company Limited ADS (LFC) has Short Term PowerRatings of 4. Details on China Life Insurance Company Limited ADS (LFC) Short Term PowerRatings is available at This Link.

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