According to China Knowledge, China Life Insurance Company is set to purchase a 60% stake in Zhongcheng Trust and Investment Corporation, a Chinese pensions fund manager, for a total consideration of RMB3.6 billion.

China Life and Zhongcheng are waiting for official confirmation after handing over their application for the deal to the Ministry of Finance (MOF), the MOF revealed, as cited in China Knowledge.

As part of the proposed deal, China Life will acquire 1.44 billion shares – 1.2 billion of new shares and 240 million of existing shares – in Zhongcheng, and, as a result, will become the majority shareholder, China Daily reported.

The media has also questioned whether MOF will permanently distribute 100% of its Zhongcheng holdings after the China Life takeover has completed. The pensions fund manager has seen its profit surge in recent years, driven by the strong performance of its domestic investment businesses, revealed China Daily.