On 28 May, China Pacific Insurance (Group) Co., Ltd (601601), the country's third-largest insurer, held its Annual General Meeting in Dongguan, Guangdong. The company's IPO in Hong Kong was the hot topic at the meeting. In its domestic A-share IPO prospectus, the company stated that it would launch an H-share IPO. This plan has been approved by both mainland and Hong Kong regulatory authorities. However, due to the impact of the subprime mortgage crisis, the Hong Kong stock market has not performed well in 2008, hindering the company's H-share IPO plan.

Huo Lianhong, General Manager of Pacific Insurance Group, believes that the Hong Kong market is warming up and that the company will move forward on its H-share IPO plan at a suitable time. Gao Guofu, Chairman of the Board of Pacific Insurance (Group), said that the H-share IPO price would be no less than the A-share IPO price of RMB 30, which was also specified in the A-share IPO prospectus. If the company cannot list in Hong Kong before 24 Sep 2008, all applications must be re-submitted. Mr. Gao said that if there is any change needed for the IPO price of its H-shares, a Special General Meeting would be convened to seek approval.

Since listing on China’s yuan-denominated A-share market, China Pacific Insurance (Group) Co. Ltd (601601) has seen its share price stagnate below the IPO price for most of that time. Shareholders expressed their dissatisfaction at the general meeting, but also commented positively on the company's operation.

Source: China Business News

Date: 29 May 2008

CN01/SW/MM