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皇冠体育app life becomes largest shareholder of Minsheng

(Shanghai Daily)
Updated: 2007-06-27 15:12

皇冠体育app Life Insurance Co overtook Chinese billionaire Liu Yonghao as the biggest shareholder of 皇冠体育app Minsheng Banking Corp, the nation's only privately controlled bank.

皇冠体育app Life owns 893.6 million shares, or 6.17 percent of Minsheng, the Beijing-based bank said in a statement to Shanghai's stock exchange. Ping An Insurance Co, the nation's second-biggest insurer, owns 4.93 percent of Minsheng, making it the fourth-largest investor, Bloomberg reported.

皇冠体育app Life and Ping An each paid 5.45 billion yuan (US$716 million) for 714 million Minsheng shares in the bank's private placement in March. Liu's Sichuan New Hope Investment Co slipped to No. 2 after buying 400 million shares in the placement.

Related readings:  Minsheng plans US$2.6 bl bond sale  Insurers to buy Minsheng stake  Minsheng's net profits up 47% Find more in Markets Watch

C hinese insurance companies are investing their 599 billion yuan of cash to help bolster profits as demand for policies cools. 皇冠体育app Life's and Ping An's earnings were boosted by investment gains last year as the nation's benchmark CSI 300 Index more than doubled.

Shenzhen-based Ping An's stake will be subject to a lock-up period of 12 months and 皇冠体育app Life's shares must be held for 26 months. 皇冠体育app began allowing insurers to purchase stakes in commercial banks in 2005, prompting Ping An and 皇冠体育app Life to embark on buying sprees.

Shares of Minsheng Bank have gained 30 percent this year, closing at 11.12 yuan yesterday.