China to buy 520 million stake in Tianjin Bank

China Pacific Insurance (601601. SH,2601.HK) Another city.　　A number of people close to the Chinese Tai Bao said that the Chinese Tai Bao to spend 520 million yuan to invest in Tianjin Bank, if the investment was approved by the regulatory authorities, this will be after the Hangzhou bank, Shanghai agricultural firm after the third time to take the stake in unlisted small banks. "With the implementation of the Basel Ⅲ, more and more banks will need to crack capital constraints, which will bring more investment opportunities to insurance funds."　　"said a person in the Asset Management department of an insurance company. 520 million of the "Tai Bao" more early contact with the bank of Tianjin, and now the regulatory authorities have been approved.　　"The Kingpin will buy 100 million shares in Tianjin Bank, but it is a small proportion of the bank's total equity and is only a financial investor," said a person close to the Chinese kingpin.　　It is understood that the Tianjin Bank plan to the existing shareholders and new investors targeted financing 4.2 billion yuan, 5.20 yuan per share. The annual report of Tianjin Bank shows that by the end of 2009, The bank net assets of 8.274 billion yuan, total assets of 149.3 billion yuan, attributable to the shareholder net profit of 1.308 billion yuan, to 2.726 billion shares of total capital estimate, 2009 years of Tianjin bank earnings per share 0.48 yuan, the net assets of 3.04 yuan per share, a rough estimate of 5.2 yuan for the corresponding price/earnings ratio of about　　10.8 times times, the city net rate is about 1.71 times times (corresponding to 2009 financial data and total equity).　　At the same time, 5.20 yuan/share is lower than last June, shareholders in the Beijing equity exchange listed Tianjin bank shares price, at the time of 6 yuan per share. In addition to capital shares, the Chinese Tai Bao also hope that with the Tianjin bank to carry out business cooperation, "the production of life insurance business and the bank linkage, which is also one of the contents of cooperation."　　People familiar with the matter said. Data show that Tianjin bank from the original 65 cities in Tianjin City credit cooperatives shareholders and the financial bureau, Tianjin Economic and Technological Development Zone Corporation and other 17 institutions jointly initiated the establishment of the initial registered capital of 1 billion yuan. In 2006, the company implemented the second replenishment and expansion of shares, and introduced ANZ as a shareholder.　　2007 changed its name to Tianjin Bank, at the same time allowed to operate across the region, set up branches in the field, as at the end of 2009, the bank's capital adequacy rate of 12.34%, non-performing loan rate of 1.54%.　　2009 Annual report shows that Tianjin Bank's largest shareholder is Tianjin bonded Area Investment Co., Ltd., the shareholding ratio of 27.47%, ANZ ranked second, the shareholding ratio of 20%.　　In addition to the Chinese kingpin, ANZ also said at the end of last year that it would invest a further 832 million yuan (about 126 million Australian dollars) in the bank to finance its plan to maintain a 20% per cent stake.　　There are indications that the Chinese Tai Bao is actively planning the opportunity for unlisted banks to take stakes in the Ⅲ. In addition to the Bank of Tianjin, in November 2009, the Tai Bao to participate in the preparation of the listing of the Hangzhou bank to increase capital shares, investment of 1.3 billion yuan, holding 100 million shares of Hangzhou bank, accounting for the increase in capital shares after the total share capital of 5.98%, the fifth largest shareholder after the bank's capital increase.　　In the second half of last year, the Chinese Tai Bao again planned to spend nearly 1.3 billion yuan, subscribed to 200 million shares of Shanghai agricultural firm, accounting for about 4% of the shares after the completion of the capital increase.　　The common feature of these banks is that they are actively preparing to go public.　　A brokerage personage discloses, following the successful listing of three cities such as Nanjing Bank, Ningbo Bank and so on, the small and medium-sized city firm and even the agricultural firm surges up the intense market impulse, at present Hangzhou bank, the Dalian Bank, the Shanghai Bank and so on the city firm are waiting for the listing in line.　　Public information shows that the bank of Tianjin has also entered the listing preparation, launched a series of listing preparations including cleaning assets, normalizing equity, and auditing the previous years ' operation. "From this perspective, the Tai Bao should be the purpose of financial investment, now there is ample insurance funds, to find good investment projects more difficult."　　Guotai analyst Peng Yurong said. According to the announcement, China longevity achieved a total investment gain of 47.5 billion yuan in the first three quarters of last year, achieving a total investment yield of 3.65%, and a simple annual investment yield of 4.88%　　China's first three quarter of last year to achieve investment income of 12.86 billion yuan, investment income in the third quarter of 3.753 billion yuan, as of three quarters, the kingpin to achieve 6.3% of the average net return on investment. China Ping An three-quarter total investment yield of 3%, three quarter to achieve investment income of 9.14 billion yuan, flat with the same period last year.　　The flat investment earnings of these insurers weighed on three quarterly earnings growth. The Asset Management Department of the insurance companies said they were closely monitoring the investment opportunities for bank shares, would take the initiative to contact the banks, and sometimes door-to-door sales, "more opportunities this year, as the Basel Accord Ⅲ, many banks will face capital requirements." "In fact, with the Chinese version of the Basel Accord Ⅲ and the central bank's policy of differential reserve ratios this year, China's banking industry is facing unprecedented capital-replenishment pressures," he said. The first to take this step of the listed bank is Minsheng Bank, January 7, the bank launched a total of up to 21.5 billion yuan of directional issuance program.　　This includes to the old shareholder China Life directed additional 500 million shares. And for unlisted small and medium-sized banks, in order to balance development and capital replenishment, it is also necessary to increase investment and expand shares. "But so far, the city firm, the stock market has not yet been opened, Tianjin Bank, etc. when the market uncertainty." "Therefore, investing in unlisted banks makes it difficult to contribute to short-term performance," said the insurer.