Xinhua Linkage Holdings "Urgently Sells" 200 Million Shares of Three Gorges Life Insurance: Four Listings Within 2 Months, Current Listing Price Nearly 50% Below Initial Price

On March 18, JD Auction Platform relisted 200 million shares of China Xinhua Holdings Limited (hereinafter referred to as “Xinhua Holdings”) held by China Trunk Life Insurance Co., Ltd. (hereinafter “Trunk Life”). The auction will start on April 2, with an initial bid of 102.342 million yuan, approximately 0.517 yuan per share. This is the fourth auction of this equity stake.

On February 3, 2026, 200 million shares of Trunk Life held by Xinhua Holdings were first listed on JD Auction Platform. Over the following month, the shares were listed multiple times but remained unsold. The starting price was initially 202 million yuan, then decreased to 161.6 million yuan, 129.28 million yuan, and most recently to 103.424 million yuan, nearly halving from the original price.

Industry insiders believe that Xinhua Holdings’ urgent sale of its insurance equity stake is a move to recover liquidity through asset disposal. Capital interest in insurance licenses has significantly cooled, reflecting not only issues within the insurance companies themselves but also the survival pressure on small and medium-sized insurers and the shrinking value of shell resources.

Xinhua Holdings Plans to “Clear Out” Its 6.59% Stake in Trunk Life

Trunk Life is a life insurance company headquartered in Chongqing, owned by a state-owned financial enterprise of Chongqing. In March 2016, Xinhua Holdings, as one of the founding shareholders, was approved to participate in the establishment of Trunk Life.

According to Xinhua Holdings’ official website, it is a large private enterprise mainly engaged in cultural tourism, new chemical materials, mineral resource development, oil trading, and investment. In recent years, Xinhua Holdings has faced liquidity crises, triggering debt risks. On August 9, 2022, Beijing First Intermediate Court accepted the judicial reorganization of Xinhua Holdings. On April 14, 2023, the court approved a substantive merger and reorganization involving Xinhua Holdings and six other companies, including Xinhua Mining. Under the reorganization plan, Xinhua Holdings will continue operations and establish a new mining company. The plan was officially executed by June 2025.

Initially, Xinhua Holdings was the second-largest shareholder of Trunk Life, holding 20%. Since 2023, Trunk Life has completed two capital increases, but Xinhua Holdings did not participate, resulting in a dilution of its shareholding.

According to the latest equity disclosure in January 2026, major shareholders holding over 5% are: Chongqing Development Investment Co., Ltd. (33%), Chongqing Expressway Investment Holding Co., Ltd. (20.07%), Chongqing High-Tech Group Co., Ltd. (15.46%), Chongqing Yufu Capital Operation Group Co., Ltd. (13.35%), and both Xinhua Holdings and Jiangsu Huaxi Tongcheng Investment Holding Group Co., Ltd. (6.59%).

The 200 million shares auctioned represent 6.59% of Trunk Life, which is the entire stake held by Xinhua Holdings. If sold successfully, Xinhua Holdings will fully exit as a shareholder of Trunk Life.

Regarding Xinhua Holdings’ plan to “clear out” its Trunk Life shares, economist and member of the Ministry of Industry and Information Technology’s Information and Communication Economy Expert Committee Pan Helin told the Daily Economic News that this move aims to recover liquidity through asset disposal, indicating that Xinhua Holdings is under significant liquidity pressure.

Notably, the latest starting bid is only 103.424 million yuan, roughly 0.517 yuan per share, nearly halving the initial auction price in less than two months.

Trunk Life’s Capital Injection and Narrowed Losses Last Year

The reporter notes that in previous auctions, the starting prices were gradually reduced from 202 million yuan to 161.6 million yuan and 129.28 million yuan, all ending in no bids. The current low price is a record low, raising questions about whether it can attract potential investors.

Financial data shows that Trunk Life has consistently struggled with losses. From 2018 to 2024, its insurance business income was 11 million, 917 million, 1.102 billion, 624 million, 559 million, 406 million, and 333 million yuan, respectively. Net profits were -58 million, -119 million, -105 million, -65 million, -110 million, -197 million, and -252 million yuan.

In July 2025, Trunk Life completed its second round of shareholder capital increase, raising registered capital from 1.537 billion to 3.033 billion yuan. This capital injection strengthened its financial position and improved its solvency. According to the fourth-quarter solvency report of 2025, Trunk Life achieved insurance business income of 633 million yuan, a significant increase of 90.09% year-on-year; net loss was 197 million yuan, with a notable narrowing of losses. As of the end of 2025, the company’s comprehensive and core solvency adequacy ratios were 338.10% and 332.49%, respectively. The risk comprehensive rating for Q2 and Q3 of 2025 was B.

Industry analysts note that the repeated failure to sell this stake is due to its small size—only 6.59%—making it a secondary financial shareholder without operational control. Since Trunk Life has not yet turned profitable, short-term investment returns are uncertain, discouraging potential buyers. Pan Helin also pointed out that this reflects a slowdown in the insurance industry, especially for small and medium-sized insurers under pressure. It also indicates that the value of shell resources has diminished.

Currently, the phenomenon of failed sales of small and medium-sized insurance company stakes is common. The Daily Economic News reporter observed that two shares of Ancheng Property & Casualty Insurance have undergone multiple auctions on Alibaba Asset Platform, both ending without bids. For example, one stake of 4.634 million shares had an starting price of 74.1446 million yuan at the end of 2025, now reduced to 35.0253 million yuan; another of 135 million shares had an starting price of 216 million yuan, now down to 102 million yuan. Both saw reductions of over 50%.

On December 22, 2025, Minsheng Life’s 6.17% stake was listed for transfer on the Beijing Stock Exchange, with the transfer price negotiable and split transfer considered. The disclosure deadline is June 17, 2026, but the stake has not yet been sold.