Bei Jing Shang Bao·2025-09-16 13:35Core Viewpoint - The issuance of zero-coupon convertible bonds by Chinese insurance companies, such as China Pacific Insurance and Ping An, is becoming a new fundraising channel in the capital market, driven by low interest rates and a global search for quality assets [1][3]. Group 1: Financing Activities - China Pacific Insurance recently issued HKD 155.56 billion in zero-coupon convertible bonds, achieving a premium issuance with a conversion premium rate of 25% [3]. - Ping An also issued zero-coupon convertible bonds earlier this year, with a total principal amount of HKD 117.65 billion [3]. - The issuance of these bonds marks several records, including the first offshore convertible bond for state-owned financial enterprises listed both domestically and internationally, and the largest zero-coupon convertible bond in Hong Kong's history [3]. Group 2: Strategic Intentions - The funds raised from these bond issuances are intended to support the core insurance business and strategic developments of the companies [3]. - The insurance industry is facing increasing operational pressures, prompting companies to enhance their capital strength through various means, including issuing convertible bonds [5]. Group 3: Market Context - The current low domestic interest rates facilitate bond issuance, allowing companies to optimize their capital and debt structures while effectively enhancing capital strength [4]. - The trend of seeking overseas financing is expected to continue, as it provides access to a larger pool of funds and more flexible financing tools, especially for companies looking to expand internationally [6].