The National Social Security Fund of China has invested 10 billion yuan (HK$12 billion) in an 11 per cent stake in the People's Insurance Company (Group) of China (PICC), paving the way for the insurer's possible dual listing in Hong Kong and Shanghai.
PICC chairman Wu Yan was quoted by Shanghai Securities News on Monday as saying the company was 'ready' for an initial public offering and would 'prudently choose the timing' for it.
A spokeswoman for PICC confirmed yesterday that the National Social Security Fund is the first strategic investor in the insurer.
The parent company of Hong Kong-listed PICC Property and Casualty has been preparing for a dual listing since it completed a shareholding reform in 2009.
'They started to look for strategic investors last year,' Guotai Junan Securities analyst Luo Lei said. 'This is a common practice among companies seeking a listing.'
The national pension fund, which had 856.7 billion yuan of total assets as of the end of last year, is the mainland's largest institutional investor. Its main sources of funds are shares in state-owned enterprises, government subsidies, contributions from workers and employers, and lotteries.
