Our reporter Leng Cuihua
On the evening of November 29th,breaking news New China Life Insurance and China Life announced that they would jointly set up Private Equity Investment Fund Co., Ltd. (hereinafter referred to as "Private Equity Fund Company"), each contributing 25 billion yuan.
At the same time, Xinhua Assets, a holding subsidiary of New China Life Insurance, and China Life Assets, a holding subsidiary of China Life Insurance, respectively invested 5 million yuan to jointly set up a fund manager company (hereinafter referred to as the "fund manager") to act as the manager of the above-mentioned private fund companies.
Talking about the purpose of setting up a private equity fund company, New China Life Insurance said: "Further increase the long-term investment assets in line with the company's investment strategy, optimize the asset-liability matching of insurance funds, and improve the efficiency of capital use." It said that this investment is in line with the relevant national policies and the overall strategic development direction of the company in the future, and will not affect the normal production and operation activities of the company, and will not have a significant adverse impact on the normal production and operation of the company, and there is no harm to the interests of the company and all shareholders.
The relevant person in charge of China Life told the Securities Daily that the term of the fund is 10+N years. After the expiration of the 10-year period, it can be extended by changing the record, or it can be withdrawn after mutual agreement.
According to reports, the fund intends to invest in the stocks of high-quality listed companies with good corporate governance and stable operation, and conduct investment and operation in accordance with the principle of marketization, grasp the timing of opening positions according to the market situation, and dynamically optimize the strategy. China Life Insurance and New China Life Insurance, as large life insurance companies, can invest in high-quality listed companies for a long time by jointly setting up funds, which can give full play to their investment advantages and is an innovation and attempt to further improve asset-liability management and optimize investment methods. At the same time, it is conducive to giving full play to the positive role of insurance institutional investors, expanding the breadth and depth of insurance funds participating in the capital market, and realizing the benign interaction and common development between insurance funds and the capital market.
The tentative name of the above-mentioned private equity fund company was also disclosed at the same time. It is Honghu Private Equity Investment Fund Co., Ltd. with a registered capital of 50 billion yuan. At the same time, the fund manager is tentatively named Guofeng Xinghua Private Equity Fund Management Co., Ltd. with a registered capital of 10 million yuan.
According to the insiders, the private equity fund company established this time is the first corporate private equity investment fund established by two insurance companies in the insurance industry. Although there have been precedents for insurance companies to jointly set up private equity funds, they are private equity funds and special purpose companies (SPV). On April 20th this year, the "Kyushu Qihang (Beijing) Equity Investment Fund (Limited Partnership)" in which 11 state-owned life insurance companies participated was established, with a total investment of 33.9 billion yuan. Since then, the fund has appeared among the shareholders of Swiss People's Life, with a shareholding ratio of 60%.
Zhang Lingjia, former president of PICC Capital's equity investment and president of Kelly Capital, told the Securities Daily reporter that New China Life Insurance and China Life jointly set up a private equity investment fund, which will mainly invest in the secondary market and should have nothing to do with special purposes. The establishment of this private equity fund company is expected to bring incremental funds to China's secondary capital market.
Private equity fund is an important type of private equity fund, which mainly invests in publicly traded shares, bonds, futures, options, fund shares and other securities and their derivatives as stipulated by the CSRC.
Chang Chunlin, the founder of Beijing Real Estate Investment Management Co., Ltd., told the Securities Daily that insurance funds, as medium and long-term funds, pay attention to the medium and long-term development prospects of investment projects and pursue long-term investment returns on the premise of controlling investment risks, and expect the fund to increase its investment in secondary markets including Beijing Jiaotong University and innovative opportunities such as S funds and mezzanine funds.