New China Life hopes to raise $4bn in dual IPO

New China Life Insurance is seeking to raise up to US$4 billion through a dual listing in Hong Kong and Shanghai – possibly marking the start of a wave of initial public offerings by Chinese insurance companies, the Financial Times reported. New China Life, in which Zurich Financial Services (ZURN.SIX) has a 15% stake, is planning to sell 20% of its total equity on the two bourses. The company had originally scheduled to finish the IPO before the end of October, but the listing may be postponed as this week’s market swoon has cast doubt on investor appetite. Analysts expect a number of second-tier Chinese insurance companies to follow New China Life’s move to the stock market, including Taikang Life Insurance, and China Reinsurance and People’s Insurance Company (Group) of China. New China Life has been mired in scandal for years, including accusations of embezzlement and misappropriation of more than US$40 million by its former chairman, Guan Guoliang.