China Life Insurance (Group) Co. Ltd previously held 353 mln shares of the company, equal to a 5.32% stake. As of 27 June 2008, it holds 330 mln shares, or 4.97%, following the sale of 23 mln shares.

In June 2006, China Life Insurance purchased 150 mln shares of the company at RMB 9.29 per share and China Life Insurance Co. Ltd, a subsidiary of China Life Insurance Group, purchased 350 mln shares. In 2007, the company distributed a stock dividend of 10 shares for every 10 shares held, following which China Life Insurance Group held 300 mln shares of CITIC Securities.

The company's stock price closed at RMB 23.92 on 29 June 2008, based upon which the market value of the 300 mln shares held by China Life Insurance Group is RMB 7.18 bln. China Life Insurance Group is to gain RMB 5.87 bln in profit while China Life Insurance Co. Ltd will gain 133% more profit than China Life Insurance Group from its holdings in the company.

Insiders pointed out that China Life Insurance Group reduced its holdings in the company at the prevailing market price in order to improve its performance report in 1H 2008.


Source: Shanghai Securities News

Date: 1 Jul 2008

CN01/BG/MZ/AR/MM