CORRECT: China Life Cuts Visa Stake By Half From 6 Mln In Mar

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Aug 26, 2008 U.S Hot Stocks

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Last Update: 8/26/2008 7:23:27 AM

(Adds first-half net profit and investment gains, executive’s comments on
overseas investment.)

HONG KONG (Dow Jones)–China Life Insurance Co. (LFC), China’s largest life
insurer by premiums, said Tuesday it is looking into overseas investment
opportunities after cutting its stake in credit-card firm Visa Inc. (V) by more
than half.

The insurer is interested in financial companies that would complement its
existing business, chief investment officer Liu Lefei told reporters in Hong
Kong.

“In 2007 and the first half of 2008, asset prices were so high that chances for
value investing were slim,” Liu said. “But after recent falls on the
international markets, opportunities for overseas investments started to emerge.”

Liu said China Life has “made progress” on potential overseas purchases, but it
hasn’t reached a stage where disclosure is warranted. He didn’t name any
acquisition targets.

China Life hasn’t invested overseas since it bought a less than 1% stake in Visa
for US$300 million during the credit-card firm’s initial public offering.

Liu said the insurer cut its stake because “Visa’s share prices have fully
reflected the company’s value.”

In its first-half report, China Life said it held 3 million Visa shares by the
end of June, down from the 6.8 million it subscribed to when the credit-card
company listed in March.

The document, posted on the Hong Kong stock exchange Web site, didn’t disclose
the insurer’s gains from the stake sale. But it said the market value of China
Life’s remaining stake in Visa had nearly doubled to CNY1.67 billion (US$244
million) by the end of June from the remaining stake’s initial investment amount
of CNY926 million.

Liu didn’t say whether China Life will continue to offload Visa shares, adding
any decision will have to take into consideration market conditions.

China Life reported Monday a 32% drop in first-half net profit to CNY15.84
billion from CNY23.29 billion a year earlier, as investment returns took a hit
from declines in global equities markets.

It recorded an unrealized loss of CNY6.50 billion on its assets, compared with a
gain of CNY10.84 billion in the year-earlier period. Its realized gains also
dropped to CNY742 million in the first half from CNY2.26 billion a year earlier.

-By Amy Or, Victoria Ruan and Rose Yu, Dow Jones Newswires; 852-2832 2335;
amy.or@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today’s most
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China Life Insurance Co. has cut its holding in Visa Inc. by half.

In its first-half report, China Life said it held 3 million Visa shares by the
end of June, down from the 6 million it subscribed to when the credit-card
company listed in March.

China Life hasn’t invested overseas since it bought a less than 1% stake in Visa
for US$260 million during the credit-card firm’s initial public offering.

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Technorati Tags: Asset Prices, Chief Investment Officer, China Life Insurance, China Life Insurance Co, Dow Jones, Exchange Web, Hong Kong Stock, Hong Kong Stock Exchange, Initial Public Offering, Investment Gains, Kong Stock Exchange, Lfc, Life Hasn, Life Insurance Co, Life Insurer, Overseas Investment, Overseas Investments, Overseas Purchases, Value Investing, Visa Inc

Tags: Asset Prices, Chief Investment Officer, China Life Insurance, China Life Insurance Co, Dow Jones, Exchange Web, Hong Kong Stock, Hong Kong Stock Exchange, Initial Public Offering, Investment Gains, Kong Stock Exchange, Lfc, Life Hasn, Life Insurance Co, Life Insurer, Overseas Investment, Overseas Investments, Overseas Purchases, Value Investing, Visa Inc

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