Not just China Life Insurance but its rival Ping An Insurance and the mainland's new sovereign fund China Investment Corp (CIC) are said to be among mainland financial institutions sitting on paper profits from investing in Visa, which completed the world's largest initial public offering last week.
CIC was believed to have subscribed to shares worth more than US$100 million, according to Caijing magazine. On the New York Stock Exchange where it is traded, the credit card operator's stock shot up 35 per cent to close at US$59.73 on Monday from its offer price of US$44. That would have given CIC its first paper profit from overseas investments. Visa raised nearly US$20 billion last Tuesday.
China Life had invested US$300 million in Visa's offering. Industrial & Commercial Bank of China and China Construction Bank also reportedly became Visa's substantial investors.