China Life Plans USD581 Million Fund JV Targeting SOEs, Emerging Sectors
Tang Shihua
DATE:  Aug 24 2018
/ SOURCE:  Yicai
China Life Plans USD581 Million Fund JV Targeting SOEs, Emerging Sectors China Life Plans USD581 Million Fund JV Targeting SOEs, Emerging Sectors

(Yicai Global) Aug. 24 -- China Life Insurance, one of the country's major insurance firms, will contribute USD581 million to cooperate with an investment company to jointly set up a fund to invest in the equity of major local state-owned enterprises, high-end equipment manufacturing and other emerging sectors.

China Life will cooperate with another investment management company under it and Shandong Xindongneng Fund Management which is backed by the government of China's eastern Shandong province to set up a limited partnership equity investment fund of USD727 million, with a term of eight years.

China Life will invest USD581 million and Xindongneng will contribute USD145 million. Both are limited partners. An investment management company under China Life will chip in USD145,000 as general partner and executive partner, the announcement said. The parties plan to sign their partnership agreement by December 31 to officially pool their equity investment fund.

They will participate in the mixed-ownership reform by introducing private capital into major SOEs in Shandong province. They will join these enterprises' to buy equity in high-end equipment manufacturing and local key sectors such as tourism, leisure, culture and modern finance, per the announcement.

Investment firms will also take the form of debt-to-equity swaps, mergers and acquisitions, asset restructuring, pre-initial public offering investments, and listed companies' private placements, the announcement stated.

The above fund will help the company broaden its investment channels in insurance funds and boost its growth in the province and afford it the opportunity to allocate high-quality local equity in cooperation with the local government to achieve long-term stable returns, it added.

Editor: Ben Armour

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Keywords:   Equity Investment Fund,Joint Venture,China Life,Shandong Province,Local Government,SOE Reform,Strategic Investor,Life Insurance