Insurer's new fund kicks off in HK - ResearchInChina
Date:2007-06-08
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FRANKLIN Templeton Investments and China Life Insurance Co(Stock Code: 601628), the Chinese mainland's biggest insurer, have begun operating their fund management company in Hong Kong.
The new venture, China Life Franklin Asset Management, will initially manage the Beijing-based insurer's overseas assets, according to an e-mailed statement from Franklin Templeton. It plans to offer investment management and advisory services to other mainland institutions.
China announced on June 1 that it plans to issue rules allowing the mainland's insurers to diversify investments by putting more money overseas. The mainland's insurers are trying to bolster returns on 1.89 trillion yuan (US$247 billion) in assets while spreading risk after the nation's CSI 300 Index almost doubled this year, sparking concern of a stock bubble.
"The recent relaxation of foreign investment restrictions on Chinese mainland banks is just the latest step in a broader trend among government and corporate entities in China" of seeking investment opportunities abroad, said Guang Yang, a Hong Kong-based portfolio manager at Franklin Templeton.
The mainland's insurance regulator approved the new fund management company in January. China Life Insurance Asset Management Co holds a 50 percent stake in the venture, and affiliate China Life Insurance (Overseas) Co owns 24 percent. Franklin Templeton holds the remainder.
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