Goldman Sachs: China Pacific Insurance (02601) issued zero-interest convertible bonds with a target price of HK$30.5.

Goldman Sachs released a research report stating that China Pacific Insurance (02601) announced the issuance of 15.556 billion yuan zero-coupon convertible bonds due in 2030. The report believes that this is a stock offering that the company is using the opportunity of the past 12 months of stock price increase and low-cost financing. The bank gave the company a "neutral" rating with an H-share target price of 30.5 Hong Kong dollars. The bank does not believe that China Pacific Insurance's core insurance subsidiaries (Pacific Life Insurance and Pacific Property Insurance) have an immediate need for capital, as their core solvency ratios were 136% and 196% respectively in the first half of the year. On the other hand, given the uncertainty of the long-term bond yield trends, the bank believes that additional capital can make the company more flexible in capital management.