China Life Insurance Company Limited (the “Company,” stock code: 2628.HK) announced a proposed new Entrusted Investment and Management Agreement (the “New Agreement”) with China Life Investment Management Company Limited (“CLI”), a wholly-owned subsidiary of China Life Insurance (Group) Company (“CLIC”). The New Agreement will succeed the existing arrangement, which expires on 31 December 2025, and is set to take effect from 1 January 2026 until 31 December 2028.

According to the announcement, CLI will continue to invest and manage assets entrusted by the Company on a discretionary basis, focusing on insurance asset management products, financial products, equity/real estate funds, and public REITs products. The Company will retain ownership of the entrusted assets, while CLI has discretion within the scope permitted by regulators. The investment guidelines will be updated annually and approved by the board of directors (including independent non-executive directors).

Under the New Agreement, annual caps have been proposed for newly entrusted assets: RMB120 billion in 2026, RMB140 billion in 2027, and RMB150 billion in 2028. The caps for fees related to investment management, product management, real estate operation, and performance-based elements have been set at RMB1.1 billion in 2026, RMB1.2 billion in 2027, and RMB1.3 billion in 2028. Fee rates vary according to asset classes and performance results, with standards referencing market practices to ensure that terms remain fair to the Company.

The Company outlined internal controls to review fee calculations and periodically appraise the performance of entrusted assets. CLI is also obliged to grant the Company terms no less favorable than those offered under any similar engagements with third parties. In addition, CLIC, which holds approximately 68.37% of the Company’s share capital, will abstain from voting on the relevant resolution due to its interest in these continuing connected transactions under Chapter 14A of the Hong Kong Listing Rules.

An extraordinary general meeting will be convened to obtain independent shareholders’ approval, with a circular to be dispatched on or about 5 December 2025. The proposed new arrangement is designed to capitalize on CLI’s expertise in alternative investments, expand the Company’s investment scale, and further diversify its portfolio within the regulatory framework.