Beijing may back BoC on AIG bid

Bank of China (BoC) may have overtaken insurer China Life to become Beijing’s top choice as a potential bidder for the Asian life insurance assets of troubled US insurance giant AIG, the Financial Times reported, citing sources familiar with the matter. "The current thinking in Beijing is that BoC is better equipped to manage foreign assets than China Life, which has more limited overseas experience," an anonymous source was quoted as saying. Others said that nothing has been decided yet and Beijing may still deem the investment too risky. BoC’s surprise interest in the insurance unit, which could be worth up to US$20 billion, highlights the government’s willingness to consider investing in certain overseas assets despite a recent string of disastrous investments in foreign banks and insurers, the article said.