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Closed-end funds to bring 7 billion yuan earnings for China Life |
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Written by Administrator
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Monday, 27 November 2006 |
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BEIJING, Nov. 27 (InfoChina) – China Life Insurance Co., Ltd. and its parent company China Life Insurance Group, known as the biggest holder of closed-end fund units in China, now hold 15.371 billion fund units, which are expected to generate more than 7 billion yuan in book profit for listed China Life and its parent company.
Increasing investment in closed-end funds is regarded as one of the main investment strategies of China Life this year. It is learned that the consortium has raised its fund holdings to 19 percent of the total scale of closed-end funds issued in the country, almost touching the statutory limit of 20 percent. Statistics showed that driven by the bullish stock market, the market value of closed-end funds increased more than 20 percent from October 24-November 23. In the meantime, the Fund Index of Shanghai Stock Exchange surged 20.09 percent from 1259.01 to 1511.91 points, while that of Shenzhen Stock Exchange grew 24 percent from 1140.73 to 1414.49 points. The average discount ratio of the funds has dropped below 35 percent. Those large-sized funds with longer maturity are the driving force of the growth. |
China Stock News