Transaction Overview - Taiping Life (a subsidiary of China Taiping) signed an agreement with China Railway Construction Corporation on October 31, 2025, to sell all minority stakes in four target companies for a total price of RMB 6.5 billion [1] - The equity transfer includes 7.47% of China Railway Construction Investment (RMB 1.891 billion), 17.27% of China Railway Kunlun (RMB 1.773 billion), 10.86% of China Railway Eleventh Bureau (RMB 1.655 billion), and 8.49% of China Railway Construction (RMB 1.182 billion) [1] Financial Impact - The group is expected to recognize a profit of approximately RMB 300 million from the transaction, and after completion, Taiping Life will no longer hold equity in the aforementioned companies, with proceeds allocated for general working capital [2] Target Companies' Financials - The combined net assets of the target companies are approximately RMB 98.49 billion for 2024, with operating profits of RMB 11.11 billion and RMB 5.55 billion for 2023 and 2024, respectively [3] Transaction Completion - The transaction has met all preconditions and has been completed, in compliance with the disclosure standards required by listing rules [4]

Macro Dynamics - In September, the bond market issued a total of 81,027.8 billion yuan in various bonds, including 14,904.9 billion yuan in government bonds, 8,519.1 billion yuan in local government bonds, 11,741.0 billion yuan in financial bonds, 13,407.3 billion yuan in corporate credit bonds, 365.7 billion yuan in credit asset-backed securities, and 31,627.8 billion yuan in interbank certificates of deposit [2] - In September, China's foreign exchange market had a total transaction volume of 26.87 trillion yuan (approximately 3.78 trillion USD), with the interbank market accounting for 22.44 trillion yuan (approximately 3.16 trillion USD) [3] - In the first three quarters, the revenue of large-scale internet and related service enterprises in China reached 14,420 billion yuan, showing a year-on-year growth of 2.8% [4][5] Financial Institutions - China Taiping announced the sale of minority stakes in four companies for a total consideration of 6.5 billion yuan [8] - Hangzhou Bank received approval to issue capital instruments not exceeding 40 billion yuan [9] Market Data - On October 31, A-shares saw a collective decline, with the Shanghai Composite Index down 0.81%, the Shenzhen Component down 1.14%, and the ChiNext Index down 2.31% [11] - The financing balance in the two markets decreased by 7.392 billion yuan, with the Shanghai Stock Exchange reporting a balance of 12,535.78 billion yuan and the Shenzhen Stock Exchange reporting 12,196.92 billion yuan [12] Company Dynamics - China National Petroleum Corporation announced the resignation of Zhou Song as the chairman of the supervisory board [14] - InSai Group decided to terminate a major asset restructuring plan due to changes in the external environment [15] - Tianqi Co., Ltd. signed a strategic cooperation framework agreement with Foxconn Automotive to deploy at least 2,000 embodied intelligent robots over the next five years [17] - Li Auto announced a recall of 11,411 units of the MEGA 2024 electric vehicle due to potential safety hazards [18] - Qingyue Technology is under investigation by the China Securities Regulatory Commission for suspected false financial reporting [19]

Group 1 - The core point of the article is that China Taiping (00966.HK) announced a share transfer agreement with China Railway Construction Corporation (CRCC), where Taiping Life will transfer its entire stake in four target companies for a total cash consideration of RMB 6.5 billion [1] - The agreement follows previous investment agreements made on December 18, 2019, where Taiping Life invested a total of RMB 6.5 billion in the target companies [1] - After the capital increase, Taiping Life holds approximately 7.47%, 17.27%, 10.86%, and 8.49% stakes in China Railway Investment, China Railway Kunlun, China Railway No. 11 Bureau, and China Railway Construction, respectively [1] Group 2 - Within 72 months after the capital increase, CRCC may negotiate with Taiping Life to repurchase the increased shares based on fair and reasonable principles [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 （於香港註冊成立之有限公司） （股份代號：966） 須予披露交易 出售持有的四家標的公司少數股權 茲提述本公司日期為2019年12月18日及2023年1月13日的公告（「該等公告」），內容有關太 平人壽（本公司的非全資附屬公司）對四家標的公司的原建議增資，及修訂各投資協定中有 關後續重組的釐定期限。除另有界定者外，本公告所用詞彙與該等公告所界定者具有相同涵 義。 背景 誠如該等公告所披露，於2019年12月18日，太平人壽、中鐵建股份與標的公司訂立四份投資 協定。根據投資協定及補充協議項下的條款及條件，太平人壽以現金方式向標的公司投資合 共人民幣65.0億元。增資完成後，太平人壽分別持有中鐵建投、中鐵昆侖、中鐵十一局和中 鐵建設經擴大股權約7.47%、17.27%、10.86%、8.49%。另外，在太平人壽增資日後72個月內， 經中鐵建股份、標的公司及太平人壽協商後，中鐵建股份可按公平合理的原則以後續重 ...

Regulatory Developments - The National Financial Regulatory Administration announced that the fourth set of life tables will be implemented starting January 1, 2026, which includes four types of tables for different insurance products [1] - A notification was issued to support cooperation between wealth management companies and licensed asset management institutions, aiming to enhance the development of the pension industry [2] - The administration supports domestic insurance companies to issue "sidecar" insurance linked securities in the Hong Kong market to diversify catastrophe insurance risks [3] - A draft for the revised "Management Measures for Bank Insurance Institution Licenses" has been released for public consultation to strengthen the management of bank insurance institutions [4] Corporate Updates - Taiping Pension received approval to increase its registered capital by 333.33 million yuan, raising it from 3 billion yuan to 3.33333 billion yuan, with Belgian insurance company Fidea acquiring a 10% stake [5] - The five major A-share listed insurance companies reported a record net profit of 426.04 billion yuan for the first three quarters of 2025, a year-on-year increase of 33.5%, driven by a recovery in the capital market and increased equity investments [6] Personnel Changes - Rong Honggang has been appointed as the interim head of Shidai Property Insurance, following the resignation of Zhong Xiangning from the position of deputy general manager [7] - Zhao Xuejun has resigned as the general manager of Guolian Life Insurance after less than a year in the role, with Niu Leilei appointed as the interim head [8]

Core Viewpoint - The company is optimistic about achieving positive growth in its premium income for 2026, targeting an increase of approximately 5%-10% overall, with the first quarter expected to show higher growth than the second and third quarters, while the third quarter is anticipated to be a low point for growth [1] Group 1: Business Outlook - The individual business channel is projected to achieve positive growth in premium income, with an expected increase of 5%-10% for the year [1] - The company anticipates that the new business value will turn positive [1] - In the bancassurance channel, the overall market growth is expected to remain consistent with this year, with a premium income growth rate around 10%, while the company's growth rate is expected to exceed 10%, estimated between 20%-30% [1] Group 2: Product Structure - The company plans to maintain a diversified product structure, with traditional products not exceeding 50% of the total life insurance business, indicating that floating income products will account for over 50% [1] - The proportion of health insurance products is expected to increase next year [1] - As of the end of September, the company's sales of participating insurance in the bancassurance channel accounted for approximately 27.7%, ranking second among listed peers [2] - By October, the ratio of participating insurance to traditional products reversed, with over 70% being participating insurance and 30% traditional products [2]

Core Viewpoint - Catastrophe insurance is becoming increasingly important as extreme weather and natural disasters rise globally, with China facing significant challenges in its catastrophe insurance system despite recent policy advancements [2][4]. Group 1: Catastrophe Insurance Landscape in China - Over 70% of cities and more than 50% of the population in China are located in areas severely affected by natural disasters, highlighting the complex and concentrated nature of catastrophe risks [5]. - The catastrophe insurance system in China has been gradually improving, with significant developments such as the establishment of the earthquake catastrophe insurance community in 2016 and ongoing pilot programs in over 20 provinces [6]. - Despite a premium scale of 1.232 billion yuan and a compound annual growth rate exceeding 39% from 2014 to 2024, the insurance payout for natural disasters in China is only about 10% of the economic losses, compared to a global average of 50% [6]. Group 2: Regulatory Developments and Innovations - The Financial Regulatory Bureau has issued a notification allowing domestic insurance companies to issue "sidecar" insurance-linked securities in the Hong Kong market, which helps transfer risks to the capital market [3][4]. - "Sidecar" insurance-linked securities can provide additional protection for insurance companies, enhancing their financial stability and allowing them to share catastrophe risks with the capital market [4]. - The issuance of catastrophe bonds has been supported by recent regulatory changes, with the first catastrophe bond issued in Hong Kong in 2015 and subsequent issuances in 2021 and 2022 [9][10]. Group 3: Industry Trends and Future Outlook - The catastrophe bond market is expected to grow significantly, with predictions indicating a 20% increase in market size to approximately $60 billion by 2025 [10]. - The introduction of "sidecar" insurance-linked securities is anticipated to diversify capital markets and may lead to structural impacts on domestic stock markets, potentially attracting international capital back to mainland markets [11][12]. - The insurance industry is encouraged to adopt technology for risk management, shifting focus from post-disaster compensation to pre-disaster prevention, with companies like China Life and PICC developing advanced risk management platforms [7].

Group 1 - The meeting emphasized the importance of studying and implementing the spirit of the 20th Central Committee's Fourth Plenary Session as a major political task for the current and future period [1] - The China Taiping Insurance Group is required to enhance political awareness and develop specific work plans to ensure comprehensive training and understanding of the session's spirit across all levels of the organization [1][2] - Leadership at all levels is expected to take the initiative in learning and applying the session's principles, fostering a strong atmosphere of study and implementation throughout the organization [1][2] Group 2 - The meeting outlined a focus on key tasks from the session, emphasizing the need to align with the main responsibilities and effectively utilize the insurance industry's roles in supporting technological innovation, advanced manufacturing, green development, and small and medium enterprises [2] - The company is tasked with increasing the supply of inclusive insurance products and services while contributing to the stability of the capital market by leveraging insurance funds as a stabilizing force [2] - There is a call for heightened risk awareness and proactive risk management strategies to prevent and mitigate financial risks [2]

Core Insights - The 20th Central Committee of the Communist Party of China approved the "15th Five-Year Plan" for economic and social development, outlining major principles and strategic deployments for the period [2] Group 1: China Life Insurance - China Life emphasized the importance of implementing the spirit of the 20th Central Committee as a major political task, focusing on the financial insurance sector's role in the "15th Five-Year Plan" [4][5] - The company aims to enhance its core competitiveness and foster new growth drivers while ensuring high-quality development and risk management [5] Group 2: China People's Insurance - China People's Insurance Group highlighted its commitment to serving the real economy and the public, focusing on its core functions as an economic stabilizer and social stabilizer [3] - The company plans to support national strategies, enhance healthcare and pension services, and contribute to common prosperity and regional development [3] Group 3: China Pacific Insurance - China Pacific Insurance is set to actively participate in the Guangdong-Hong Kong-Macao Greater Bay Area development, focusing on its main responsibilities and enhancing risk management [6] - The company aims to support technological innovation and green development while increasing the supply of inclusive insurance products [6] Group 4: China Export & Credit Insurance Corporation - China Export & Credit Insurance Corporation plans to expand its export credit insurance coverage and scale, aligning with the "Belt and Road" initiative and promoting balanced trade [7] - The company is focused on high-quality development and ensuring the successful completion of its "14th Five-Year Plan" [7] Group 5: China Reinsurance - China Reinsurance aims to enhance its high-quality development by focusing on its reinsurance functions and aligning its "15th Five-Year Plan" with national strategic goals [8] - The company is committed to risk management and ensuring the completion of its annual objectives while preparing for the "15th Five-Year Plan" [8] Group 6: New China Life Insurance - New China Life Insurance is focused on integrating its development with national reforms, emphasizing the importance of the "insurance + investment + service" model [9][10] - The company aims to leverage its long-term capital to support new productive forces and contribute to social governance and financial stability [9][10]

Core Viewpoint - The Financial Regulatory Bureau has issued a notification to support domestic insurance companies in issuing "sidecar" insurance-linked securities in the Hong Kong market, aiming to enhance catastrophe risk management and diversify risk channels for insurance companies [1][5]. Group 1: Issuance of "Sidecar" Insurance-Linked Securities - "Sidecar" insurance-linked securities allow insurance companies to transfer catastrophe risks from events like earthquakes and floods to specially established special purpose insurers (SPI), which raise funds through equity or debt securities to cover these liabilities [2][3]. - The notification outlines management requirements for SPIs, including the need for approval from Hong Kong insurance regulators and the establishment of protective mechanisms for liabilities [3]. Group 2: Improvement of Catastrophe Risk Protection System - The increasing severity of catastrophe risks due to climate change has created an urgent need to improve the catastrophe risk protection system in China, with global natural disaster losses expected to reach $320 billion in 2024, significantly above the average of the past 30 years [4]. - The introduction of innovative risk transfer mechanisms, such as catastrophe bonds and now "sidecar" insurance-linked securities, is seen as essential for enhancing the capacity of insurance companies and expanding the coverage of catastrophe insurance [4][6]. Group 3: Benefits of "Sidecar" Insurance-Linked Securities - "Sidecar" insurance-linked securities provide additional protection for insurance companies by allowing them to access capital markets, thus supplementing traditional reinsurance markets [5]. - These securities help smooth operational volatility for insurance companies by sharing catastrophe risks with capital markets, and they are less correlated with traditional financial assets, making them an attractive investment option in Hong Kong [6].