Xinhua Winland Auctions Yangtze River Life Insurance's 200 million shares for the fourth time; prices repeatedly fall, reflecting a rational return to the insurance equity market

JD Auction Platform recently listed 200 million shares of China Three Gorges Life Insurance Co., Ltd. The shares are held by XinHuaLian Holdings. This is the fourth attempt to auction these shares. According to the auction information, the starting date is April 2nd, with the starting price reduced to 103.424 million yuan, approximately 0.517 yuan per share, significantly lower than the initial auction price, reflecting a shift in valuation logic for insurance equity markets.

As an original shareholder of China Three Gorges Life, XinHuaLian Holdings’ disposal of these shares is closely related to its debt restructuring process. Since falling into a liquidity crisis in 2020, the company entered a substantive merger and reorganization in 2023, with the reorganization plan completed by June 2025. The 200 million shares on auction represent 6.59% of China Three Gorges Life’s equity and are all unpledged shares held by XinHuaLian Holdings. Successful transfer would allow it to fully exit the shareholder list. Previous three auctions saw starting prices gradually lowered from 202 million yuan to 129.28 million yuan, all failing to attract bids and resulting in no sale. The current price is at a historic low, aiming to attract investors.

In contrast to the cold reception of the equity auction, China Three Gorges Life’s operational performance continues to improve. Data for 2025 shows the company’s insurance business revenue reached 633 million yuan, a 90.09% increase year-over-year; net profit loss was 197 million yuan, a 21.83% reduction in loss compared to the previous year. Investment income saw a cumulative annual return of 3.90%, with a comprehensive investment return of 3.61%, both up by 1.67 and 1.76 percentage points respectively from last year. Capital strength has significantly increased: in 2025, a capital injection of 1.5 billion yuan was made through share expansion, raising registered capital to 3.033 billion yuan, and net assets grew by 203.46% to 1.927 billion yuan.

The equity structure has been restructured under state-owned capital leadership. In November 2025, Chongqing Yufu Capital Operation Group transferred 562 million shares (18.54% of total share capital) free of charge to Chongqing Development Investment Co., Ltd., whose shareholding rose to 33%, becoming the largest shareholder. In the second round of capital increase and share expansion completed in March of the same year, two state-owned capital shareholders—Chongqing Development and Chongqing Three Gorges State Capital Operation Group—were added. Currently, the top four shareholders are all Chongqing state-owned enterprises, holding a combined 81.88%. Solvency indicators remain stable, with the comprehensive and core solvency adequacy ratios at 338.10% and 332.49%, respectively, and the risk rating has been rated B for two consecutive quarters.

Industry experts note that the valuation logic for insurance equity has undergone profound changes. Previously, the market expected high premiums for insurance licenses; now, investors focus more on the company’s sustainable profitability, capital consumption efficiency, and strategic synergy value. The 6.59% stake held by XinHuaLian Holdings is classified as a financial Type II shareholder, without operational control, and China Three Gorges Life has not yet achieved profitability, making short-term investment returns uncertain. Under the background of valuation normalization in the industry, potential investors are more cautious about such equity.

The outcome of this auction has significant implications for both parties. For China Three Gorges Life, equity stability affects its future development pace; for XinHuaLian Holdings, it is a key step in completing debt restructuring. Multiple rounds of equity auctions not only record the transformation trajectories of both companies but also reflect the rational adjustment of capital valuation of insurance companies during the shift from scale expansion to high-quality development in the insurance industry.