Pacific AMC to Add Ante on Infrastructure Bonds

Pacific Asset Management Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd. will continue boosting infrastructure bond investment programs this year.

Pacific AMC at the end of 2009 started to favor funds with relatively huge potential in bonus payment due to expectation for uncertainties in the market this year. Meanwhile, it made more investments in stocks that feature steady performance, reasonable value and strength of cash bonus payment.

It in November 2009 spent CNY 1.3 billion in buying 100 million shares of Bank of Hangzhou during the lender's private share placement, thus becoming the fifth largest shareholder. Bank of Hangzhou is in preparations for A-share IPO.

Pacific AMC will continue to push infrastructure bond investment plan this year, said a source. It sponsored a Pacific-Hebei new energy wind power station bond investment plan in the first half of 2010 and completed a fundraising of CNY 1.3 billion. It also reserves strategic assets that have medium- and long-term appreciation potential.

Analysts expect Pacific AMC's return on investment for the first half of this year would beat the industry average.