Global law firm Clifford Chance has acted as the international legal counsel to The People’s Insurance Company (Group) of China Limited (PICC) and China Reinsurance (Group) Corporation (China Re) on their respective share issuances.
- PICC issued A shares to the Ministry of Finance of the People’s Republic of China (Ministry of Finance), raising gross proceeds of RMB15 billion. The Ministry of Finance subscribed in cash for all shares issued. After deducting the relevant issuance expenses, the net proceeds will be used entirely to replenish PICC’s capital.
- China Re issued domestic shares to the Ministry of Finance, raising gross proceeds of RMB3 billion. The Ministry of Finance subscribed in cash for all shares issued. After deducting the relevant issuance expenses, the net proceeds will be used entirely to increase China Re’s core Tier 1 capital.
The two transactions form part of the recent capital replenishment programme for central state-owned financial institutions. Through the issuance of RMB300 billion in special government bonds, the Ministry of Finance in China is supporting eight central state-owned financial institutions, including PICC and China Re, to replenish their core Tier 1 capital and further strengthen their operational resilience, risk-bearing capacity and ability to serve the real economy.
Chair of China Practice and the lead partner on both transactions, Tim Wang said, “Our substantial involvement in these high-profile transactions demonstrates our capability in advising on significant and complex transactions involving major state-owned and central enterprises.”
The team advising PICC included counsel Jing Jing, trainee solicitor Carson Lin* and legal analysts Wang Fei and Sun Xuan.
The team advising China Re included counsel Cai Yuanyuan and associate Wang Zhao.
Clifford Chance previously advised capital replenishment initiatives of major Chinese banks such as Postal Savings Bank of China and China Construction Bank on the issuance of A-shares totalling RMB235 billion.
* From Shanghai He Ping Law Firm. Clifford Chance LLP and Shanghai He Ping Law Firm have established a Joint Operation in the China (Shanghai) Pilot Free Trade Zone under the name Clifford Chance LLP and Shanghai He Ping Law Firm (FTZ) Joint Operation Office with the approval of the Shanghai Bureau of Justice.
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