China Life says domestic rebound will lift equity market

Mainland China's macroeconomic rebound and a more standardized capital market will help improve the equity market in the long run, China Life Insurance Company (2628), said.

China's 10-year treasury yield once touched a record low at 2.48 percent in April followed by an economic rebound, said Zhang Di, general manager of the investment management department.

The group seized the chance to allocate assets to improve the balance sheet, Zhang said.

As for credit default risks, Zhang said the group will steadily advance bond investment under the premise of controllable risks as there were a series of defaults last year.

Separately, president, Su Hengxuan, said an investigation on premium fraud and audition violations is in the final stage.

A former employee of China Life had reported that a Heilongjiang branch superviser was involved in premium fraud while some employees of the auditor Deloitte's Beijing branch reported violations of the group's auditing.