New China Life Insurance Co. Ltd. will partner with a unit of China International Capital Corp. (CICC) to set up a $1.4 billion fund to invest in companies with real estate assets, as the state-owned insurer taps the property sector for long-term returns despite a market downturn, reports Caixin. New China Life said it has reached an agreement with China Capital Investment Group (CCIG) to forge the private fund, in which the insurance company will provide RMB 9.999 billion ($1.4 billion) as the limited partner. CICG will be the general partner with a RMB 1 million investment and will manage the fund.
The fund, with a term of eight years, will focus on direct and indirect investment in companies holding property projects in their long-term portfolios, according to New China Life.
Listed in Shanghai and Hong Kong, New China Life is a leading life insurer with total assets exceeding RMB 1.3 trillion. It counts sovereign fund Central Huijin Investment Co. Ltd. and state-owned steel giant China Baowu Steel Group Corp. Ltd. as major investors.