Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-07-22
China Life Insurance (601628 market, information, reviews, search) investment assets reached 700 billion more than the theoretical size of investment in stocks and funds could reach 140 billion, the future strategy of placing investments are mostly low-risk and high return stocks of large central enterprises and infrastructure, similar to the leveraged private equity investment funds. Life Insurance Company liabilities are mainly in low-cost insurance policy reserves, China Life to buy stock is to share a basket of assets, revaluation of China's best carrier.
Foreign investors in China's equity risk premium will rise as China gradually lower the attractiveness of assets, China Life, as the world's only one in the local market, accounting for more than 50% share of the large state-owned life insurance company's unique strategic position and resources, and low financial Leverage should have a low risk premiums and low β coefficient.
Huang Hua, China CITIC Securities analyst believes that an active capital market and fund selling on the life insurance product sales growth has been inhibited because of the connotation of these products are mainly low-value finance and investment products based on the value of life insurance companies will not have substantial negative impact on long-term trend appreciation of the RMB will be a strong support for the formation of company's share price. 2007 China Life A shares a rational range of 50 to 53 yuan. If we consider the same appreciation of the yuan and the excess liquidity and other market factors, in 2007 China Life A shares of the target range will increase to 65 to 70 yuan, proposes to give an "overweight" investment rating.
