Dacheng Attorneys Advise China Life on Suzhou Urban Construction Fund Investment

On November 25, 2012, a strategic partnership agreement on setting up an RMB10bn urban construction fund was signed between China Life Insurance Company (“China Life”) and the municipal government of Suzhou. This is the first case in China where insurance fund has been tapped to support local economic endeavors in the form of equity fund. For local governments seeking funds for urban infrastructure construction, it opens up a fresh financing channel by making use of large-amount, long-term and secure insurance funds. In so doing, the insurance company’s huge stock of fund is also able to find outlets of long-term, low-risk investment.
 
Dacheng attorneys advised China Life on investing in the fund. The project team was led by senior partner Yu Hui at the practice of finance and composed of attorneys Chen Lingling, Song Ke and Li Fei. They were tasked with filing with relevant agencies, negotiation with the other party and the setting up of the fund.