Source: CCTV.com

12-08-2006 14:12

China's top life insurer, China Life Insurance is diversifying its investments, by taking a 32% stake in state-run China Southern Power Grid.

China Life is securing 19.2 billion shares of the power company at an investment of 35 billion yuan or 4.5 billion US dollars.The insurer says, the deal marks the biggest of its kind, and a strategic shift by the insurer to broaden its investment scope.

China Life also adds the purchase of the stake as part of the country's efforts to deepen insurance reform. The deal was arranged through the local government body in charge of state firms - that's the SASAC in Guangdong Province.

Part of the proceeds will be injected into Guangdong Development Bank to help clean up the its balance sheet following a carve-out of bad loans, which needs some 50 billion yuan to fix.

 

Editor:Ji Xuewen