China Life reaps RMB 840 mln from Visa investment

China Life<601628><2628>, the nation's biggest institutional investor, reaped up to RMB 840 million from its investment in Visa's IPO within half a month despite other Chinese investors suffered big losses in overseas investments.

The company bought a US$300 million worth of stakes in Visa Inc's IPO launched on Mar. 19. Shares in Visa ended at US$61.61 on Tuesday, up 40% from its IPO price US$44. The US$ 300 million purchase represents the first major investment ever conducted by a Chinese insurer in the U.S. stock market.

Spurred by the news, A-shares of China Life closed 4.54% higher at RMB 31.78 on Thursday after booking a rise of 8.65% of the previous day.

Chinese investors, including CIC, the Chinese sovereign fund and Ping An Insurance<601318><2318>, the nation's second largest insurer, witnessed big losses in their off-shore investments as stocks keep dropping on the Wall Street, buoyed by the weakening U.S. economy and rising uncertainty in the world economy in 2008.