China Life Insurance Company Limited (2628) has released a circular dated 5 December 2025 regarding the renewal of continuing connected transactions with its controlling shareholder’s subsidiary, China Life Investment Management Company Limited (CLI). The company plans to seek independent shareholders’ approval at an Extraordinary General Meeting (EGM) scheduled for 30 December 2025.
Under a new entrusted arrangement, CLI will continue to manage alternative investments on behalf of China Life from 1 January 2026 to 31 December 2028. The scope of entrusted assets includes insurance asset management products, financial products, equity/real estate funds, and public REITs. The proposed yearly caps on the contractual amount of newly entrusted assets in 2026, 2027, and 2028 are RMB120 billion, RMB140 billion, and RMB150 billion, respectively.
China Life will pay CLI management fees based on the type of underlying investments, including investment management service fees (0.08% per annum for most new-project assets), product management fees (up to 0.6% for certain products), and potential performance rewards for select existing projects with non-fixed returns. Various internal reviews and regulatory requirements govern fee determination and ensure the new terms remain on normal commercial terms.
Additionally, shareholders will consider a framework agreement between CLI and China Life AMP Asset Management Co., Ltd., also covering daily connected transactions such as fund subscriptions and redemptions. China Life states the agreements aim to promote efficient allocation of insurance funds and meet ongoing asset management needs. Shareholders and proxy holders can submit proxy forms no later than 29 December 2025. Completion and return of proxy forms do not preclude attending and voting in person at the EGM.
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