China Life eyes alt debts to lengthen asset duration
China's largest life insurer by investable assets seeks to close duration gap by increasing its exposure to alternative forms of debt, but analysts have liquidity concerns about such assets.
China Life plans to increase investments in non-standard debt and other long-term bonds, in order to lengthen its asset duration and enhance investment returns at the expense of liquidity, the company has revealed.
The move by China’s largest life insurer, with Rmb2.6 trillion ($410 billion) of investable assets, is similar to that of its large peers such as Ping An Life. Chinese insurance companies are seeking to reduce the duration gap in their investment portfolios as asset lia…
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