BEIJING, Nov. 7 (InfoChina) –China Life Group and its listed China Life Insurance Co., Ltd. (NYSE: LFC, HK: 2628) have collectively hold more than 160 shares of close-end funds, which have brought about a more than 7 billion yuan of nominal profit for the two in 2006, Xinhua-run Shanghai Securities News reported.

According to Hu Lifeng, chief analyst with China Galaxy Securities, up to last week, 53 closed-end funds involved by the China Life family have risen by 75.32 percent in value in 2006.

It is learned that increasing close-end fund investment is an important strategy of China Life this year. At present, the close-end fund holding ratio of China Life Group and China Life Insurance Co., Ltd has amounted to 19 percent, very close to the 20 percent upper limit set by the government.

The two bought in close-end funds aggressively this year. Statistics show that by the first half year, China Life has increased its holding of close-end funds by 2.303 billion shares to 15.414 billion shares.

“The company will continue increasing the holding of close-end funds in the scope allowed by the government.” said a source with China Life Insurance Asset Management Co. which managing the funds for China Life. 

China Life Group and China Life Insurance Co., Ltd. held 13.1 billion shares of close-ended funds by December 31 of last year with a market value of 8.5 billion yuan. In the first half of this year, the value of close-ended funds gained an average rise of 39.46 percent and China Life generated profits of 3.5 billion yuan from the 13.1 billion units of funds in its hand.

Up to June 30 of this year, China Life Group and China Life Insurance Co. held a total of 15.4 billion shares of close-ended funds with a market value of 14 billion yuan. Some 600 million shares of close-ended funds were newly increased from June 30 up to now.