CHINA LIFE INSURANCE COMPANY LIMITED (2628) has announced plans for a connected transaction involving the formation of a partnership alongside Pudong Venture Capital, Guotou Leading, and China Life Infrastructure as Limited Partners. Chuangzhi Herui, a wholly-owned subsidiary of China Life Capital, will act as the General Partner, and Lingzhiying Shanghai will serve as Special Limited Partner. China Life Capital, an indirect wholly-owned subsidiary of the Company’s controlling shareholder, China Life Insurance (Group) Company (CLIC), will be the Manager, overseeing daily operations and investment strategies.
The total capital contribution of the partnership is stated to be RMB5,051,500,000. Of this, CHINA LIFE INSURANCE COMPANY LIMITED is expected to contribute RMB4,000,000,000. The partnership’s focus is to invest in equity interests of growth-stage enterprises and strategic emerging industries, primarily in the artificial intelligence sector, as well as integrated circuits and biomedicine. At least 70% of the paid-in capital is planned for allocations in strategic AI-related areas, while investment limitations aim to maintain prudent risk management, including a limit of 10% of the partnership’s total capital for any single project without advisory committee approval.
The board indicates that the transaction aligns with national strategic objectives and enhances the use of insurance funds. According to the announcement, the arrangement meets the relevant requirements under Chapter 14A of the Listing Rules, with the transaction being subject to reporting and announcement obligations but exempt from independent shareholders’ approval. Management fees to China Life Capital remain below specified thresholds for these requirements. The Board considers the collaboration to be fair and reasonable, concluding that it is beneficial for the Company’s long-term interests and supports its equity investment strategy.
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