China Life to 'reduce stock-related assets' this year

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The China Life Insurance company will look to reduce its exposure to stock-related assets over the course of this year, it has been revealed.

Having recently announced profit gains of 42 per cent for the second six months of 2007, China Life has indicated its intention to invest strongly in the long-term but to cut its equity allocations in 2008.

The move has been prompted by the recent turbulence on stock markets around the world and the company, which is the largest underwriter in China, has said that it will increase its bond investments going forward, Reuters reports.

"We will probably take some measures to reduce the percentage of stocks and stock-related assets in our portfolio because we think Chinese and global stock markets will see big swings in 2008," the company's chief investment officer explained.

China Life is listed on the New York and Hong Kong stock exchanges and has tens of millions of insurance and annuity customers in its native country.