China Life Insurance Company Limited (China Life) has announced a major equity investment plan. China Life Insurance Company Limited announced on January 23, 2026, that the company intends to act as a limited partner and jointly establish a partnership enterprise with multiple parties. This move signifies that this "life insurance giant" is expanding its investment footprint in strategic emerging industries. A partnership enterprise with a professional structure will be formed. According to the announcement, China Life, Pudong Venture Capital, SDIC Pioneer, and China Life Infrastructure (all acting as limited partners) intend to enter into a partnership agreement with Chuangzhi Herui (acting as general partner) and Lingzhiying Shanghai (acting as special limited partner) to establish the partnership enterprise. The total capital commitment from all partners of the partnership enterprise is 5.0515 billion yuan, of which China Life's commitment is 4 billion yuan. In terms of management structure, China Life Capital will serve as the manager of the partnership enterprise. Concurrently, China Life also intends to enter into a supplementary agreement with relevant parties to amend certain clauses of the partnership agreement applicable to the company. China Life is expected to formally execute the partnership agreement and supplementary agreement with the relevant parties by June 30, 2026. The operational term and investment strategy of the partnership enterprise are clearly defined. The announcement specifies the partnership's term and investment strategy. The operational term of the partnership enterprise is from the date of the first issuance of the business license until the date ten years after the first closing. Within this period, the five years starting from the first closing date constitute the investment period, followed by a five-year exit period commencing the day after the investment period ends. The partnership term can be extended twice, each for one year, upon unanimous consent of all partners. The fund will primarily invest in growth-stage enterprises or strategic emerging industries through minority direct equity investments, focusing mainly on technology innovation companies within three leading industries: artificial intelligence, integrated circuits, and biomedicine. The announcement specifically notes that the proportion intended for investment in the artificial intelligence field shall not be less than 70% of the paid-in capital. A dual-committee governance mechanism will be established. Regarding governance structure, the partnership enterprise will establish an Investment Decision Committee and an Investment Advisory Committee. The Investment Decision Committee will consist of seven members appointed by the manager, China Life Capital. The Investment Advisory Committee will comprise five members, with China Life, Pudong Venture Capital, SDIC Pioneer, Lingzhiying Shanghai, and China Life Capital each appointing one member. The transaction is defined as a declarable connected transaction. China Life explained the nature of this transaction in its Hong Kong stock exchange announcement. The group company, as the controlling shareholder of China Life, is also the indirect controlling shareholder of China Life Capital, while China Life Infrastructure and Chuangzhi Herui are both its wholly-owned subsidiaries. Therefore, this transaction constitutes a connected transaction under Chapter 14A of the Listing Rules. As one or more of the applicable percentage ratios for this transaction exceed 0.1% but are less than 5%, it is subject to the declaration and announcement requirements but is exempt from the requirement for independent shareholder approval. China Life Asset's successful exit paradigm as "patient capital." It is noteworthy that China Life Assets has successful exit experience in the alternative investment space. According to a recent announcement, State Power Investment Nuclear Energy Co., Ltd. recently achieved a listing through a major asset restructuring of a listed company, marking China Life Assets' first alternative equity investment project to exit via this method. This project is a typical case of China Life Assets fulfilling its role as "patient capital." As early as seven years ago, China Life Assets invested 8 billion yuan to increase its capital in SPIC Nuclear Energy, accompanying the company's long-term growth and supporting its green innovation development and debt reduction and deleveraging efforts. This securitization of assets through restructuring not only signifies a major breakthrough in China Life Assets' full-cycle management capabilities encompassing "fundraising, investment, management, and exit" but also validates the effectiveness of its long-term, value-investing strategy, providing valuable experience for the operation of this and future funds.
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