China Life boosts real estate fund commitment, extends investment management deal

China Life Insurance Company Limited (China Life) announced the renewal of its insurance fund investment management cooperation framework agreement with China Life Capital Investment Company Limited, extending it until December 31, 2028. This allows China Life to continue as a limited partner in fund products managed by China Life Capital, focusing on new infrastructure, urban renewal, logistics, and new energy sectors. Concurrently, China Life will increase its capital commitment to the China Life Qihang Phase I (Tianjin) Equity Investment Fund Partnership by 5 bn yuan, raising its total commitment to 18.9 bn yuan.

The extended framework agreement involves China Life Capital providing daily operations, investment management, and consulting services for fund products, charging management fees between 0.1% and 1.5% annually. For the three years ending December 31, 2028, the annual cap for management fees received by China Life Capital will be 500m yuan. The real estate fund, managed by China Life Property Investment Management Co., Ltd., will prioritize investments in real estate projects in Tier 1 and strong Tier 2 cities in China, aligning with the long-term, stable return needs of insurance funds.

These transactions are considered related party transactions as China Life Capital and China Life Property are subsidiaries within the China Life Insurance (Group) Company. Both sets of transactions have been approved by China Life’s board of directors and do not require shareholder approval, given that they are within the company’s normal business operations and and do not harm the interests of China Life or its minority shareholders.