LFC to Close Above $100 for the First Time

So I didn’t buy Google two years ago and now it’s traded near $500. But I have LFC.

China Life Insurance (LFC), my biggest gainer so far, is on track to close above $100 for the first time today. Currently traded at $101.70 per share, LFC has seen its stock price more than tripled in the past year. The news that drives LFC to the new high is that LFC is planing to sell about 1.5 billion A-shares (valued $3.57 billion) in Shanghai before 2007, becoming the only domestic insurance company to sell shares in mainland China so far. According to Reuters, the proceeds from the new offering will be used “to boost its payment ability, benefiting its long-term development.”

In last May, LFC has paid one-time divided of $0.30 per share. At P/E ratio of 40.91, LFC is kind of expensive as compared to, for example, MatLife (P/E 15) or AIG (P/E 17).