China Life books 40% returns from overseas stock investment

China Life Insurance Co Ltd<601628><2628>, the country's biggest life insurer, reaped nearly 40% returns from its overseas stock investments last year despite the subprime crisis, the company said.

It gained a 39.6% return from overseas stock investments through China Life Franklin Asset Management Co Ltd, its asset management unit. The figure was 6.73% higher than the average return ratio in the Hong Kong stock market.

The asset management entity which started operation last May was formed by China Life and Franklin Templeton Investments, the largest asset management company for public enterprises in the U.S.

To comply with relevant regulations, insurers can invest 15% of their total assets of the previous year in overseas investments, and China life only use 5% of them last year, the company said.

The venture was set up completely in line with global top-ranking standards. Although its investment mainly focuses on the Hong Kong market now, it will consider other overseas markets when time is appropriate, said Zhao Wei, chairman of the joint venture.