BEIJING, Nov. 15 (InfoChina) – China Life Insurance Co., Ltd. (LFC.NYSE, 2628.HK) is expected to make an IPO on the Shanghai Stock Exchange at the end of January 2007 at latest, Xinhua-run Shanghai Securities News quoted an exclusive source as saying.

It means that China Life’s initial offering may be delayed as an earlier source said the IPO would be launched before the end of this year.

       China Life earlier planned to issue 1.5 billion shares in Shanghai to raise 23 billion yuan. However, as its H-share price has rocketed over 150 percent over the end of 2005 and the price will have a reference effect on the A-share issue price, analysts believe that the upcoming share offering will likely carry a high P/E ratio. If counting with the company’s previous performance, the static P/E may reach 53.54 at present.

       A well-informed source estimates that the issue price of China Life may be between 15-16 yuan.

       Domestic insurance stocks have been energetically prompted by foreign investors recently in HK with the prices constantly hitting all-time highs. Even so, many securities dealers rate China Life and Ping An Insurance (2318.HK) as “hold” or “buy”, indicating that the price may continue going up and fixing the issue price of China Life may be a tougher task for the company for it must take the interests of both domestic investors and foreign investors into consideration.

       It is learned that China’s insurers have stepped up pace to return to the domestic stock market and within one and half year two HK-listed insurers have completed their preliminary work on domestic IPO and entered examination and approval stage.

       Ping An also announced to issue no more than 1.15 billion A-shares in Shanghai to raise an estimated 33 billion yuan. The money will be used to increase the capital adequacy of the company to meet the requirements of developing new insurance businesses.