BEIJING, October 10 (InfoChina) – Both China Life Insurance Group and China Galaxy Securities Co., Ltd. have neither denied nor confirmed a recent market hearsay that China Life plans to take part in the restructuring of Galaxy Securities to gain a controlling equity, but whether the deal will succeed or not will depend on the attitude of Central Huijin Holdings Co., Ltd., the current biggest shareholder of Galaxy, China Business News reported on October 10.

However, an official from China Securities Regulatory Commission (CSRC) confirmed that the restructuring scheme of Galaxy has not been amended, in which China Life is not in the list of shareholders.

       Central Huijin Holdings, in cooperation with Ministry of Finance (MOF), invested 7 billion yuan to set up Galaxy Finance Holdings Co., Ltd. on August 8, 2005 and plans to complete restructuring and found a new Galaxy Securities within 2006.

       However, Galaxy Securities has postponed its restructuring for a long time neglecting that October will be the deadline for securities brokers to accomplish restructuring.

       It is said that the new Galaxy Securities will have a registered capital of 6 billion yuan, in which 5.933 billion yuan will come from Galaxy Finance Holdings. Therefore, Central Huijin may have a say in Galaxy Securities’ restructuring. Huijin’s thought in coping with equity investment in securities industry may decide the final result, said a senior official from China Life.

       Some investment bankers deem that Galaxy Securities may be one of the best securities brokers in doing investment banking, therefore, it will become the best choice for China Life to expand its financial territory in China. (XIC)