CHINA Life Insurance Co and Ping An Insurance (Group) Co said they hold no debt issued by Fannie Mae and Freddie Mac, the two agencies that own or guarantee nearly half of the US$12 trillion of United States mortgages.

"We've reconfirmed this with our investment management department," said Li Yinghui, assistant secretary-general of the board secretariat at China Life, the nation's largest insurer. "We hold almost no debt issued by foreign institutions or governments." Ping An, the second-largest Chinese insurer, has also verified it owns no Fannie Mae or Freddie Mac debt, said Shenzhen-based spokesman Sheng Ruisheng.