China Life Insurance Company Limited will establish Tianjin Shenghe Xincheng Equity Investment Fund Partnership (Limited Partnership) by 31 December 2026. The insurer will act as Limited Partner, contributing RMB4.999 billion of the partnership’s total RMB5.00 billion capital, while China Life Industrial Investment Management Co., Ltd. (CLIIM) will serve as General Partner with a RMB1.00 million stake.
The eight-year fund targets equity investments in mainland Chinese semiconductor businesses. The two-year investment window will be followed by a six-year exit period, with two possible one-year extensions by unanimous partner consent. Initial deployment will focus on acquiring up to a 3% stake in a process-support services provider to semiconductor design houses and system companies.
China Life Capital Investment Company Limited—an indirect wholly-owned unit of China Life Insurance (Group) Company (CLIC)—will manage the fund for an annual fee equal to 0.2% of China Life’s paid-in capital during the investment and exit periods; no fee applies during any extension period. An investment decision committee of three members appointed by China Life Capital will oversee deal approvals, while an investment advisory committee comprising representatives from China Life, CLIIM and China Life Capital will provide oversight.
Profit distribution will follow a tiered waterfall: 1. Return of each partner’s paid-in capital; 2. Priority return to China Life until it achieves an 8% internal rate of return (IRR); 3. Subsequent return to CLIIM until it attains an 8% IRR; and 4. Remaining profits split 80% to China Life and 20% to CLIIM.
As CLIC holds approximately 68.37% of China Life’s issued shares, both China Life Capital and CLIIM qualify as connected persons under Hong Kong Listing Rule 14A. The transaction’s size—exceeding 0.1% but below 5% of the applicable percentage ratios—triggers reporting and announcement obligations only; no independent shareholders’ approval is required. The management-fee arrangement is fully exempt, with all related ratios below 0.1%.
According to the board, the investment aligns with China Life’s long-term asset-liability management strategy and supports national priorities in strategic emerging industries. Directors deemed the terms fair and reasonable; interested directors abstained from voting on the resolution.
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