Zhong Lun Law Firm advises China’s state pension fund on its 10 billion yuan investment in People’s Insurance Company of China Group, which is preparing for a dual-listing in Shanghai and Hong Kong this year.
State-owned PICC recently kicked off its global road show and secured China’s National Council for Social Security Fund as its strategy investor, which agreed to acquire 11 percent of the insurer’s shares in July. The capital investment in one of China’s largest insurers helps to improve its declining solvency ratio prior to going public.
PICC’s initial public offering is set between HK$5 billion to HK$6 billion, in a bid to generate funds to expand its subsidiaries including life insurance, property and casualty units.
China International Capital Corporation Limited, HSBC, Credit Suisse and a host of investment banks are facilitating the transaction, according to International Financing Review, a Thomson Reuters publication.
With volatility in China and Hong Kong’s equity markets, experts believe PICC needs to time their IPO prudently, since recent listings of many mainland companies in Hong Kong fared unsatisfactorily.
Nonetheless, China’s insurance sector records promising growth and select market leaders are poised to go public. According to China Insurance Regulatory Commission, Chinese insurers’ total profits climbed 72.3 percent to RMB49 billion for the first half of the year since last year.
Other PRC insurers geared up for their public listings include New China Life Insurance, which aims to raise up to US$4 billion from a dual-listing in Shanghai and Hong Kong this year. Taikang Life Insurance hopes to raise funds between US$3 billion and US$4 billion from a Hong Kong listing in a few years time.
To facilitate China’s state social security fund investment, Beijing-headquartered Zhong Lun formed an advisory team led by partners Zhao Qing, Feng Jiyong, supported by lawyers Zhang Haichuan, Yuan Yi, Chen Xi, Wang Wanjun and Cheng Zhou. The group performed legal due diligence, drafted legal documents for the transaction, and conducted the negotiations.
State-owned PICC recently kicked off its global road show and secured China’s National Council for Social Security Fund as its strategy investor, which agreed to acquire 11 percent of the insurer’s shares in July. The capital investment in one of China’s largest insurers helps to improve its declining solvency ratio prior to going public.
PICC’s initial public offering is set between HK$5 billion to HK$6 billion, in a bid to generate funds to expand its subsidiaries including life insurance, property and casualty units.
China International Capital Corporation Limited, HSBC, Credit Suisse and a host of investment banks are facilitating the transaction, according to International Financing Review, a Thomson Reuters publication.
With volatility in China and Hong Kong’s equity markets, experts believe PICC needs to time their IPO prudently, since recent listings of many mainland companies in Hong Kong fared unsatisfactorily.
Nonetheless, China’s insurance sector records promising growth and select market leaders are poised to go public. According to China Insurance Regulatory Commission, Chinese insurers’ total profits climbed 72.3 percent to RMB49 billion for the first half of the year since last year.
Other PRC insurers geared up for their public listings include New China Life Insurance, which aims to raise up to US$4 billion from a dual-listing in Shanghai and Hong Kong this year. Taikang Life Insurance hopes to raise funds between US$3 billion and US$4 billion from a Hong Kong listing in a few years time.
To facilitate China’s state social security fund investment, Beijing-headquartered Zhong Lun formed an advisory team led by partners Zhao Qing, Feng Jiyong, supported by lawyers Zhang Haichuan, Yuan Yi, Chen Xi, Wang Wanjun and Cheng Zhou. The group performed legal due diligence, drafted legal documents for the transaction, and conducted the negotiations.
