FINANCE

Shanghai Advances Risk Resolution for Troubled Insurer

Published: Dec. 24, 2025 7:12 p.m. GMT+8

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Shanghai has set up a state-backed vehicle that is widely seen as linked to the ongoing risk resolution of Shanghai Life Insurance Co. Ltd., marking a key step in efforts to stabilize the troubled insurer.

The vehicle, Shanghai Xingqi Hengtai Enterprise Management Partnership (Limited Partnership), was registered on Dec. 12 with registered capital of 10.6 billion yuan ($1.5 billion). Its partners include state-backed Shanghai Pudong Development Bank (600000.SH) and Shanghai International Group, according to public business records.

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Shanghai set up a state-backed vehicle with 10.6 billion yuan ($1.5 billion) capital to stabilize troubled Shanghai Life Insurance.
The vehicle's partners include Shanghai Pudong Development Bank and Shanghai International Group.
It will likely acquire Shanghai Life’s assets and liabilities, using a structure to shield new investors from legacy risks, as seen in other insurer restructurings.

AI generated, for reference only

Who’s Who

Shanghai Life Insurance Co. Ltd.: Shanghai Life Insurance Co. Ltd. is a troubled insurer that has not disclosed solvency data since early 2022. A state-backed vehicle, Shanghai Xingqi Hengtai Enterprise Management Partnership, has been set up to resolve its risks. This partnership, with 10.6 billion yuan in registered capital, is expected to take over Shanghai Life's assets and liabilities, creating a financial firewall to isolate legacy risks.

Shanghai Xingqi Hengtai Enterprise Management Partnership (Limited Partnership): Shanghai Xingqi Hengtai Enterprise Management Partnership (Limited Partnership) is a state-backed vehicle, established on December 12 with 10.6 billion yuan in registered capital. Its partners include Shanghai Pudong Development Bank and Shanghai International Group. This partnership is anticipated to create a company to manage the assets and liabilities of the troubled Shanghai Life Insurance Co. Ltd., helping to isolate risks during its restructuring.

Shanghai Pudong Development Bank: Shanghai Pudong Development Bank (600000.SH) is a state-backed entity and a partner in Shanghai Xingqi Hengtai Enterprise Management Partnership. This partnership was established with 10.6 billion yuan ($1.5 billion) in registered capital and is involved in the risk resolution of Shanghai Life Insurance Co. Ltd.

Shanghai International Group: Shanghai International Group is a partner in Shanghai Xingqi Hengtai Enterprise Management Partnership (Limited Partnership), a state-backed vehicle with 10.6 billion yuan in registered capital. This partnership is expected to help resolve risks at Shanghai Life Insurance Co. Ltd. by potentially taking over its assets and liabilities.

Huaxia Life Insurance Co. Ltd.: Huaxia Life Insurance Co. Ltd. (华夏人寿保险股份有限公司) is an insurer that has undergone restructuring due to distress. This involved using a partnership to set up a new company, a method that separates legacy liabilities from new investors' balance sheets.

Evergrande Life Assurance Co. Ltd.: Evergrande Life Assurance Co. Ltd. is an insurer that has undergone restructuring due to financial distress. Similar to the situation with Shanghai Life, a partnership structure was utilized during Evergrande Life's restructuring.

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What Happened When

By early 2022：: Shanghai Life Insurance Co. Ltd. stopped disclosing solvency data.

Dec. 12, 2025：: Shanghai Xingqi Hengtai Enterprise Management Partnership (Limited Partnership) was registered, widely seen as linked to the risk resolution of Shanghai Life Insurance Co. Ltd.

AI generated, for reference only