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China Life to become ABC's strategic investor

By Hu Yang (chinadaily.com.cn)
Updated: 2010-06-08 15:38
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China Life Insurance (Group) Co, China's largest insurer, will become Agricultural Bank of China's (ABC) strategic investor in the latter's long-awaited initial public offering (IPO), 21st Century Business Herald reported, citing a person familiar with the matter.

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The person, who is close to ABC's underwriter, said the shares reserved for strategic investors to subscribe to the bank's A-share floating will be 30 percent, and China Life will be the biggest subscriber.

China's national pension fund has invested $2.2 billion and is the only strategic investor that the bank brought in before its IPO.

"ABC is the biggest Chinese bank in terms of bancassurance business, so it's natural for insurance companies with sufficient capital to be interested (in the IPO). But the decision still depends on the price," an insurance industry insider said.