A share placement has netted HK$214 million for red chip China Insurance International Holdings (CIIH). It will help fund its acquisition of a substantial stake in a China-registered life insurer. CIIH is moving to become the largest shareholder in Tai Ping Life Insurance as part of its foray into China's expanding insurance market. Controlling shareholder China Insurance HK (Holdings) has placed 80 million old shares at HK$2.75 each to an independent third party and will later subscribe to an equivalent number of new shares, at the same price. The price represents a 4.35 per cent discount to its HK$2.875 close yesterday. The placement comprises 8.45 per cent of CIIH's existing share capital and 7.79 per cent of the enlarged share capital. It dilutes the holding of mainland-registered parent, China Insurance, to 54.12 per cent from 58.69 per cent.