Sou Hu Cai Jing·2025-09-12 07:53Core Viewpoint - China Pacific Insurance (Group) Co., Ltd. successfully issued HKD-denominated convertible bonds, raising HKD 15.556 billion, reflecting the company's confidence in future development and injecting vitality into the capital market [1][8] Financing Purpose and Strategic Development - The funds raised from the convertible bonds will primarily support the expansion of the insurance core business and promote three strategic initiatives: "Great Health, Artificial Intelligence+, and Internationalization" [3] - For the first half of 2025, the company reported operating revenue of CNY 200.496 billion, a 3% year-on-year increase, and a net profit attributable to shareholders of CNY 27.885 billion, an 11% increase [3] Enhancing Capital Strength and Market Competitiveness - The issuance of H-share convertible bonds will attract global quality capital, enrich the shareholder structure, and enhance governance levels [4] - The funds will improve the company's sustainable capital supply capability, enhance capital efficiency, and support high-quality development [4] Expansion of Capital Supplement Channels in the Insurance Industry - The issuance of H-share convertible bonds is becoming a trend in the insurance industry, with a total of approximately HKD 27.321 billion raised by insurance companies this year [5] - Previous issuances, such as China Ping An's HKD 11.765 billion convertible bonds, indicate a growing trend in the industry [5] Advantages of Zero-Coupon Convertible Bonds - Zero-coupon convertible bonds significantly reduce financing costs for insurance companies, as no interest is paid during the bond's term [6] - Upon conversion, these bonds become part of the core capital, enhancing the insurance company's core solvency and risk resilience [6] Increasing Demand for Capital Supplementation - There is a pressing need for low-cost financing to supplement capital, as listed insurance companies have high capital supplementation demands to support future business development [7] - The trend of utilizing various channels for capital supplementation in the insurance industry is expected to continue [7]