Daily Stock Setups

Many Insurers Wish to Set up PE Investment Companies

Posted on: Wed, 18 Nov 2009 06:26:00 EST

Symbols: LFC

Are you looking to increase your ETF knowledge?

SHENZHEN, Nov 18, 2009 (SinoCast Daily Business Beat via COMTEX) --
LFC | Quote | Chart | News | PowerRating -- Several leading Chinese insurance companies have filed applications to China Insurance Regulatory Commission for setting up the private equity investment companies, in an attempt to make equity investment into those unlisted companies.

They include People's Insurance Company (Group) of China Limited (PICC), China Life Insurance (Group) Company, Taikang Life Insurance Co., and Ping An Insurance (Group) Co. of China (601318.SH, 2318.HK. With the debut of the Growing Enterprise Market (GEM) on the Shenzhen Stock Exchange, these insurance companies can have another channel of withdrawal after they make such investment.

PICC, which has had a Hong Kong-listed vehicle PICC Property and Casualty Company Limited (2328.HK), is to start preparation for the overall listing at an appropriate time, according to Chairman Wu Yan. As the parent company of China Life Insurance Company Limited (China Life, 601628.SH), China Life Insurance Group has finished the integration of the equities of its subsidiaries to pave the way for the overall listing in the not long distant future.

Compared with the bond investment, the equity investment bears more uncertainties and higher risks. Actually, some foreign insurers had closed down just because of the failure in the equity investment. By now, China Insurance Regulatory Commission has not released detailed rules for insurers to make the equity investment in unlisted companies.

With the increase of the insurance capital, Chinese insurers will have stronger demand for making profits with the insurance capital. Thus, it is necessary to provide diversified channels for domestic insurers to make investment and get fat returns. As for the insurance industry regulator of the country, it is expected to control the investment proportion and urge the insurers to make information disclosure as required.

Not only insurance companies, but also more insurance intermediaries in China's Mainland are planning to debut in the A-share market next year. One o of them is Shenzhen Mintaian Insurance Surveyors & Loss Adjusters Co., Ltd., which is expected to become the first among the country's insurance intermediary institutions to get listed on the GEM.

Sources said that the Shenzhen-based insurance intermediary institution has employed Essence Securities Co. as the underwriter of its initial public offering and it is to apply for getting listed on the GEM before this yearend.

In addition to Mintaian, Beijing-based Jiang Tai Insurance Broker Co. and Zhonghui International Insurance Brokers Co., Ltd. reportedly are also making preparations for going public on the GEM in 2010.

(USD 1 = CNY 6.82)

Source: www.p5w.net (November 18, 2009)

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

More News: Market Updates | Stock Alerts | All Trading News

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.