China Life Insurance (2628.HK) Announces RMB8.5 Billion Connected Transaction for Senior-Care Industry Investment

China Life Insurance Company Limited (2628.HK) has announced plans to form a limited partnership with China Life Qiyuan (as General Partner) by 30 September 2026, marking a RMB8.5 billion connected transaction. Under the arrangement, China Life Insurance Company Limited (as Limited Partner) will contribute RMB8,491,500,000, while General Partner China Life Qiyuan will contribute RMB8,500,000. China Life Equity Investment Co., Ltd. (CLEI) will serve as the manager, overseeing the partnership’s day-to-day operations and investment management.

According to the announcement, the 15-year partnership aims to invest in the senior-care real estate sector. Its scope includes establishing or acquiring senior-care real estate projects, undertaking leasing arrangements, and upgrading properties through public-private partnership models. The goal is to create an integrated platform covering key segments of the senior-care industry chain, with a focus on medical and nursing apartments, continuing care retirement communities (CCRCs), and inclusive senior-care services.

The partnership’s investment period will last for up to five years from its establishment date, followed by an operational maturity period and an exit period through the term’s 15th year. The partnership will adhere to investment restrictions, including a maximum investment of 20% of total capital in any single project unless approved by an investment advisory committee. The transaction is classified as a connected transaction under Chapter 14A of the Listing Rules and is subject to reporting and announcement requirements but exempt from independent shareholders’ approval.

The partnership will distribute profits in tiers, first returning each partner’s capital contribution and achieving an annual 5% return before further allocations. The management fee payable to CLEI is 1.5% of the Limited Partner’s paid-in capital balance during the investment period and 1% thereafter. Several directors of China Life Insurance Company Limited abstained from voting on this transaction due to potential interests, and the board deemed the transaction fair, reasonable, and aligned with the interests of both the company and its shareholders.