China Life (LFC)…New Shareholders may Die in Pain

Posted by Howard
on January 6th, 2008

This tidbit from Fly got me thinking about China Life (LFC), a trend I completely missed, but one that may be a goner for now.

Under the A Share Issue, 600,000,000 A Shares that have been placed with the strategy investors will be subject to a “lock-up” period of 12 months from the date of commencement of trading of the A Shares that are subscribed through on-line issue on the Shanghai Stock Exchange; 300,000,000 A Shares that have been placed with the target placees off-line will be subject to a “lock-up” period of 3 months from the date of commencement of trading of the A Shares that are subscribed through on-line issue on the Shanghai Stock Exchange.

I commented the following:

Chinese drink green tea and live forever making LFC even more profitable than warren Buffet owned insurance companies. Cats also good for long life. 600 million shares is nothing, but if you believe all this I have some Florida condos for you.

All kidding aside, 600,000,000 shares at $70 is real supply. Fly points out that LFC is the largest component of FXI (China ETF) and the FXP (the triple lindy, flint rubble double, short China ETF).

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