Chinese insurer squeezes pricing in fragile market

摘要

China life has priced the first offering of hybrid securities compliant with regulations intended to strengthen the country's insurance sector, introducing a product that quickly proved popular with investors. The US$1.28bn extendible 60-year non-call five priced at par to yield 4%, a level which was arguably tighter than 144A tranches from well-established regional insurers such as Nippon Life. China's largest insurer was able to squeeze pricing a whopping 37.5bp inside initial guidance of 4.375% after it drew orders of US$7bn, prompting some rival bankers to suggest early indications had been too generous.