China Life's role in CCB could signal rule change

Reports named China Life Insurance as a possible shareholder in China Construction Bank's new shareholding company set to launch September 21 in preparation for CCB's forthcoming flotation. Analysts said China Life's investment could signal restrictions separating insurance and banking activities could be lifted. Central Huijin Investment, the company set up to hold government bank investments, will be the controlling shareholder. Beijing last year poured US$22.5 billion into CCB, China's third largest bank, and the same amount into Bank of China. Other possible shareholders named in reports include Baosteel, State Grid Corp and China Yangtze Power, the listed vehicle behind the Three Gorges Dam.