New China Life Insurance Company

completed

Summary Of Project Information (SPI)Project NameChina-New China LifeRegionAsiaSectorProject No008312Projected Board DateFebruary 12, 1997Company NameNew China Life Insurance Co., Ltd.Technical Partner and/or Major Shareholders The Company currently is owned by 15 SOEs and private-sector shareholders, with seven owning 10% each, and the remaining 30% by 8 smaller shareholders. All the shareholders are Chinese industrial and trading groups. As part of its new ownership arrangements, the aggregate public sector shareholding in the Company would be reduced to less than 50%, with a corresponding increase in the local private and foreign shareholding. The Board of the Company has formed a share transfer committee to facilitate the potential investment by IFC and the foreign technical partners in the Company.Project Cost Including Proposed IFC Investment A capital increase of up to US$120 million in the Company, including IFC’s equity contribution of up to US$12.5 million equivalent.Location of Project and Description of Site Beijing [Capital City of China]Description of Company and Purpose of Project(include IFC’s Role and Development Impact) The project will help create the first domestic private sector-led life insurance company in China, with the equity participation and technical affiliation of leading international insurance groups. NCLI is a life insurance company recently licensed by the authorities in China, with a mandate to operate nationwide. In addition to supporting private sector entry into the insurance sector in China, IFC expects to collaborate with some of the leading international insurance groups to help open up this sector to overseas investment, which would result in ending the monopoly enjoyed thus far in the domestic market by entities owned directly by the state.Environmental Category and Issues This is an environmental review category C project. No further environmental review will be required.     Date SPI sent to InfoShop January 12, 1998 “This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384