Social Security Fund Subscribed 11% of PICC Stake

China's leading insurer PICC Group President Wu Yan disclosed on June 20, 2011 that the Social Security Fund spent CNY 10 billion buying an about 11% stake in his group.

The two parties previously signed an agreement, driving the fund to become a strategic investor of the group and to hold a seat of the Board of Directors of the group, but the specific holding held by the fund in the group was not disclosed at that time.

Data earlier issued by the insurer show total profits hit CNY 7.33 billion, and based on this, earnings per share were about CNY 0.24 and the price to earnings ratio (P/E ratio) for the share purchase by the fund is about 12.4 times. The president said the capital injection has helped his group to move a big step on the way to list, adding his group has met the requirements for an overall listing, but when to list will still depend on the approval by corresponding government organs.