Sovereign Wealth Funds Invest in China Pacific Insurance Company

The Government of Singapore Investment Corporation Private Limited is subscribing to a Hong Kong H-share private placement by China Pacific Insurance (Group) Co Ltd (CPIC). The subscription amount is up to US$ 700 million. The CPIC is a major insurer in China. Singapore’s GIC held 2.3% of shares prior to the private placement. Other sovereign wealth fund investors include Norges Bank Investment Management and the Abu Dhabi Investment Authority (ADIA).

On September 9, 2012, CPIC proposed to issue 462 million H-shares with three sovereign investors. After the placement, GIC will hold 10.61% of CPIC’s H-shares, Norges Bank Investment Management 8.35%, and the Abu Dhabi Investment Authority will have 2.75%.

The subscription price of HK$ 22.50 per new H-share represents a 2.2% discount to the closing price of HK$23 per H-share on September 7, 2012.

Over the past few years, Singapore’s sovereign funds are betting on Chinese insurers and banks.

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