Thinking about AgBank's long life or becoming the biggest cornerstone investor

Editor's note: As the ABC IPO enters the Roadshow stage, the shareholding reform of wholly state-owned commercial bank has been officially "final" since 2003. Although the current AgBank IPO specific "Cornerstone Investor" list is not officially disclosed, but outside speculation is actually sorta.　　"Securities Daily" insurance weekly through the past to participate in the bank shares of banks, combing the market performance of each bank shares accounts, to see who is the most discerning buyer? Risk-appetite bank shares are still the most discerning buyers-intern reporter Chaoxiaofi China Securities Regulatory Commission issued an audit committee June 9 audit through the ABC Co., Ltd. of the initial public offering of stock applications.　　At this point, the last state-owned commercial bank listed the initial public offering of shares (IPO) drama officially opened. ABC's prospectus, published by the Securities and Futures Commission's website, ABC will be issued through the A+h shares of the IPO, the Agricultural Bank A-share distribution to a a-share strategic investors targeted placement, the net to the inquiry object of the allocation and online funds to purchase the distribution of the way, H shares will also be introduced into the cornerstone of the issue of investors.　　According to media reports, prior to the meeting, the two sides have identified a a-share strategic placement and H-shares cornerstone investors (similar to a share of strategic investors) list, but is not officially disclosed.　　The interest of the Agricultural Bank of China is more and more strong although the specific a-share strategy placing investors list has not yet been released, but in the previous institutional road performance, agricultural Bank by institutional investors of the hot, including Chinese longevity. June 7, China Life has made clear that it will be the strategic placement of investors to participate in the ABC's a-share issue.　　At the same time, China Life also said it would closely monitor the price of ABC's H shares, not excluding the possibility of participating in the H-share subscription. Even a person close to the underwriters said: "The proportion of AgBank's strategic placements is 30%, of which China Life is the biggest buyer."　　"So it seems that China life is decided to participate in ABC's IPO, in fact, Chou and ABC's origins are already long-standing." As early as the Agricultural Bank reform in 2006, China Life has said that the hope with the Agricultural Bank of China to try to cooperate in equity, and said that the Agricultural bank to introduce Chinese life as a strategic investor cooperation is at the exploratory stage, is studying the formulation of the corresponding program. Agricultural Bank President Yang Mingsheng at that time also made a positive response: "The central has agreed that insurance companies can participate in the bank, Agricultural Bank is in the joint-stock reform, I very much hope that China life can become the strategic investors of AgBank." "In December 2007, China Life purchased 20% per cent of AgBank's stake, but the news was denied by the Chinese people. ABC also said that the joint-stock companies to be listed before the introduction of strategic investors. January 16, 2009, Agricultural Bank of China Limited officially listed. After the listing, AgBank's plan to introduce China Life as a strategic investor in China has been rumored. May 22, 2009, Chinese longevity and Agricultural Bank of ChinaThe framework Agreement on Comprehensive strategic cooperation was signed in Beijing.　　The industry has been interpreted as the ABC IPO before the introduction of strategic investors left a hole. Liu Jiade, vice president of China Life, said again in August 2009 that China Life was interested in the planned restructuring and listing of AgBank.　　April 8 this year, at the 2009-year performance note, China Life Chairman Chao reiterated that he is planning to issue A+h shares listed on the bank, intends to make financial investment. So it is not surprising that China Life is participating in ABC's IPO. "China Life" is the need for asset allocation as a long-term strategic investment. More importantly, it is conducive to the strategic cooperation between the two sides in the business. Galaxy Securities analyst Xu Liping analysis that the Agricultural bank outlets throughout China's vast urban and rural areas, is currently the most domestic outlets, the widest range of business radiation state-owned commercial banks. As of December 31, 2009, ABC has 23,624 domestic institutions. In addition, its silver insurance business is also ahead of the industry. 2009, deputy new single premium scale in the same industry first, agent insurance fee income in the same industry second. Business structure, the county insurance business income of Chinese longevity has accounted for more than half of the total income of the company, in many remote counties and villages, often only a Chinese life insurance company.　　The cooperation of two financial institutions, especially in urban and rural areas, is bound to help the two sides to develop their business. At the same time, Xu Liping also said that the expansion of its banking business is also a major financial holding group. In addition to China life, the industry believes that peace, the Tai Bao and other risk funds are also likely to participate in the ABC IPO.　　"By convention, some asset allocations should be made," Xu Liping said. The more you buy, the more you get, but Cao Heng, an analyst at GF Securities, said: "It is normal for China life to participate in AgBank's IPO." "In fact, the bank shares in the IPO, there is no risk of the figure, and more for long-term holdings."　　Take the listing of three state-owned commercial banks as an example. 2005, the Construction Bank H-Shares IPO, the issue price of HK $2.35/share. China Life and Ping An insurance are approved to invest in CCB's listed shares in Hong Kong. At that time, China life to use foreign exchange funds for overseas investment applications are still awaiting approval, that is, allow them to use foreign exchange funds, purchase of new shares, is a single approved, investment of 250 million U.S. dollars.　　June 8 Closing HK $6.120/share. May 2006, the Bank of China IPO in Hong Kong, the issue price of HK $2.95/share. China Life shares the total value of HK $2.35 billion, with 788.42 million H shares (China Life Group and China Life AG share 1.175 billion Hong Kong dollars and 394.21 million shares), becoming the largest shareholder in all 12 of the bank's basic investors. Ping An insurance was allocated 473.052 million shares. In addition, there are insurance, Taikang life insurance to participate in the subscription. And soon after the ICBC a-share IPO strategic allocation of investors list, then appeared the Tai Bao, Ping ' an, Xinhua,Taikang, Huatai and many other insurance funds.　　June 8 Closing HK $3.820/share. October 2006, ICBC IPO, the issue price of 3.12 yuan/share. In the A-share market, large-scale introduction of strategic placements, the scale reached 18 billion yuan. The insurance company subscribed for half of the amount. Pacific Life, China Life AG and China Life Group subscription value of 2 billion yuan of shares, and become a share issued the largest strategic investors. Ping An is ranked second with a subscription of $1.1 billion, Taikang life, Taiping Life, Xinhua Life and China Reinsurance (group) to subscribe to 500 million yuan, Huatai insurance subscription 200 million yuan. In addition, China Life Asset Management Company, Taikang Asset Management company, the Pacific Insurance part of the product sector also participated in the ICBC network placement.　　In the H-share market, China Life has subscribed for HK $6.4 billion, and the group company and the insurance company have invested HK $4.4 billion and HK $2 billion respectively. Among them, the Chinese longevity stake in ICBC, cost nearly 12 billion yuan, bought about 3.9 billion shares (A+h) ICBC shares, ICBC IPO is the largest base investors.　　June 8, ICBC closed 4.10 yuan/share.　　In addition, insurance funds have always played an important strategic placing investor or Cornerstone investor in the IPO of big banks such as CMB and bank. In addition to participating in the IPO, the risk investment in various other ways to participate in a number of listed banks, unlisted banks. Take three listed insurance companies as an example, according to the three company 2009 Annual report, as at the end of 2009, Guo Shou Equity Bank including Minsheng Bank, CCB, ICBC, China Merchants Bank, Hangzhou Bank, Guangdong, and so on, which shares the Guangdong Bank 20%, as long-term equity investment. China's Tai Bao joint-stock Bank includes PU FA Bank, ICBC, CCB, Hangzhou bank and so on.　　In addition to ping ' an bank, China Ping ' an is also holding the investment bank, the deep development of a, ICBC, China, the Bank of Pudong, Everbright Bank, and so on, with the end of the "Flat deep Love", ping An shares of the deep development of 21.44%. In addition, with the Commercial Bank investment insurance companies to start the pilot, the bank-owned equity penetration or will be intensified.