New China Life Insurance (HKG:1336) announced that its board of directors has approved a resolution on the issue of subordinated term debts of not exceeding RMB10 billion in total by the company, so as to boost the solvency ratio of the company. These subordinated term debts will have a maturity of more than 5 years. Their coupon rate will be determined by reference to the prevailing market rate.

The board also approved a resolution on the issue of debt financing instruments of not exceeding RMB5 billion in total by the company also for boosting the solvency ratio of the company. These debt financing instruments will have a maturity of more than 10 years, and their coupon rate will be determined by reference to the prevailing market rate.

The board also considered and approved that the company establish a wholly-owned subsidiary known as Xinhua Village Shanggu (Beijing) House Purchasing Co., Ltd. (Shanggu Company) as the development entity for the pre-construction work of the Yanqing Senior Care Residential Area. The registered capital of Shanggu Company shall be RMB15 million with the planned total investment of the project for the year 2012 of RMB540 million in the form of additional capital injection by instalments in 2012.

Furthermore, the board considered and approved that the company establish a joint venture known as Beijing Xinhua Village Tanzhou House Purchasing Co., Ltd. (Tanzhou Company) with Beijing Shangzun Investment Co., Ltd., as the development entity for the pre-construction work of the Miyun Senior Care Residential Area. The registered capital of Tanzhou Company shall be RMB10 million, of which RMB9.5 million shall be contributed by the company as to its 95% shareholding and RMB0.5 million by Beijing Shangzun Investment Co., Ltd. as to its 5% shareholding. The planned total investment of the project for the year 2012 shall be RMB900 million in the form of additional capital injection into Tanzhou Company by instalments in 2012.