US banks win job in the listing of mainland insurers | SCMP
Morgan Stanley and Salomon Smith Barney are understood to have secured lucrative sponsoring mandates from two state-owned mainland insurers aimed at raising up to a total of US$4 billion, confirming United States investment banks' stranglehold over China's global share offerings.
However, losing banks complained of a lack of transparency in the selection process, which some called "a sham" in which mandates were decided even before a "beauty parade" of investment banks.
Morgan Stanley would co-sponsor the listing of People's Insurance Co of China, the country's largest property insurer, which sought to raise between US$500 million and US$1 billion, investment banking sources said yesterday.
Meanwhile, Salomon was understood to be the co-sponsor for China Life Insurance, the country's largest insurer, which hoped to tap between US$2 billion and US$3 billion, they said.
Some investment bankers turned up the heat on the politically well connected CICC, the No 1 investment bank last year for Chinese firms listing at home and abroad.
Among its strong connections, CICC's de facto head, Levin Zhu Yunlai, is the son of outgoing Premier Zhu Rongji.
The listing of the mainland insurers this year is a milestone for China's financial sector as the country starts a corporatisation drive of state-owned firms.
The listings of the two companies will take place before the HK$10 billion overseas listings by Ping An Insurance, China's second-largest insurer. Beijing wants it to be the last in the listing line of the three.
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