Zacks Analyst Interview Highlights: China Life Insurance Company

Business Wire, Nov 24, 2006

CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Paul Cheung, who discusses China Life Insurance Company (NYSE: LFC).

A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.

What are your thoughts regarding growth in 2007? Is a slow-down inevitable?

Although I expect growth will probably be less in 2007 than 2006 - due to the Chinese government trying to rein-in the fast growing economy - I think the 2007 growth rate will still be above 9%. The reason is that the Chinese economy is now in a good stage; it is stimulated more by the private sector and foreign companies rather state-owned sectors.

Which are your favorite Buy recommendations currently?

China Life Insurance Company (NYSE: LFC) is my favorite Buy recommendation currently. The reason is that the company is well positioned to leverage the great potential in the life insurance field in China. Actually, the growth opportunities are more from second-tier and third-tier cities in the next five years rather than from top-tier cities in China where the competition is fierce.

China Life Insurance has almost a monopoly position in the second-tier and third-tier cities. Moreover, this company will benefit from both the growing capital market in China and the more investment opportunities it will be able to get as a result.

In what way would you advise investors who are looking to overweight Chinese stocks at this time?

I would advise investors who are looking to overweight Chinese stocks at this time to focus on financial and real estate companies that have leading positions in China. Investors can benefit from not only the growth potential of them but also the appreciation of Chinese currency.

Read the full interview at http://at.zacks.com/?id=2647.

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