Xinhua Linkage Holdings "Urgently Sells" 200 Million Shares of Three Gorges Life Insurance: Four Listings Within 2 Months, Current Listing Price Nearly 50% Below Initial Price

Financial Daily Reporter | Tu Yinghao Financial Daily Editor | Xu Shaohang

On March 18, JD Auction Platform relisted 200 million shares of China Xinhua Holdings Limited (hereinafter referred to as “Xinhua Holdings”) held by China Xinhua Holdings. The auction will start on April 2, with an opening bid of 102.342 million yuan, approximately 0.517 yuan per share. This is the fourth auction of this equity.

On February 3, 2026, 200 million shares of China Xinhua Life Insurance, held by Xinhua Holdings, were first listed on JD Auction Platform. Over the following month, the shares were listed multiple times but remained unsold. The listing prices decreased from the initial 202 million yuan, then to 161.6 million yuan, 129.28 million yuan, and most recently to 103.424 million yuan, nearly halving from the initial price.

Industry insiders believe that Xinhua Holdings’ “urgent sale” of insurance equity is a move to recover liquidity through asset disposal. Capital interest in insurance licenses has significantly cooled, reflecting not only issues within the insurance companies themselves but also the survival pressure on small and medium insurers and the shrinking value of shell resources.

Xinhua Holdings Plans to “Clear Out” Its 6.59% Stake in China Xinhua Life Insurance

China Xinhua Life Insurance is a life insurance company headquartered in Chongqing, owned by Chongqing State-owned Financial Enterprises. In March 2016, Xinhua Holdings, as one of the founding shareholders, was approved to participate in the establishment of China Xinhua Life.

According to Xinhua Holdings’ official website, it is a large private enterprise mainly engaged in cultural tourism, chemical new materials, mineral resource development, oil trading, and investment. In recent years, Xinhua Holdings has faced liquidity crises, triggering debt risks. On August 9, 2022, Beijing First Intermediate Court accepted the judicial reorganization of Xinhua Holdings. On April 14, 2023, the court approved a substantive merger and reorganization involving Xinhua Holdings and six other companies, including Xinhua Mining. Under the reorganization plan, Xinhua Holdings will continue operations and establish a new mining company. The plan was officially executed by June 2025.

Initially, Xinhua Holdings was the second-largest shareholder of China Xinhua Life, holding 20%. Since 2023, China Xinhua Life has completed two capital increases, but Xinhua Holdings did not participate, resulting in a dilution of its shareholding.

According to the latest equity disclosure in January 2026, major shareholders holding more than 5% are: Chongqing Development Investment Co., Ltd. (33%), Chongqing Expressway Investment Holding Co., Ltd. (20.07%), Chongqing High-tech Group Co., Ltd. (15.46%), Chongqing Yufu Capital Operation Group Co., Ltd. (13.35%), and both Xinhua Holdings and Jiangsu Huaxi Tongcheng Investment Holding Group Co., Ltd. (6.59%).

The 200 million shares up for auction represent 6.59% of China Xinhua Life, the entire stake held by Xinhua Holdings. If sold successfully, Xinhua Holdings will fully exit as a shareholder.

Regarding Xinhua Holdings’ plan to “clear out” its stake in China Xinhua Life, renowned economist and member of the Ministry of Industry and Information Technology’s Information and Communication Economy Expert Committee Pan Helin told the Daily Economic News that this move aims to recover liquidity through asset disposal, indicating that Xinhua Holdings is under liquidity pressure.

Notably, the latest starting price is as low as 103.424 million yuan, roughly 0.517 yuan per share, nearly halving the initial auction price in less than two months.

China Xinhua Life’s Capital Injection and Narrowed Losses Last Year

The reporter notes that in previous auctions, the starting prices were gradually reduced from 202 million yuan to 161.6 million yuan and 129.28 million yuan, all ending in no bids. The current price is at a historic low, raising questions about whether it can attract investors.

Financial data shows that China Xinhua Life has consistently struggled with losses. From 2018 to 2024, its insurance business income was 11 million, 917 million, 1.102 billion, 624 million, 559 million, 406 million, and 333 million yuan respectively; net profits were a loss of 58 million, 119 million, 105 million, 65 million, 110 million, 197 million, and 252 million yuan.

In July 2025, China Xinhua Life completed its second round of shareholder capital increase, raising registered capital from 1.537 billion to 3.033 billion yuan. This capital injection strengthened its capital base and improved solvency. According to the Q4 2025 solvency report, the company achieved insurance business income of 633 million yuan, a significant increase of 90.09% year-on-year; net loss narrowed to 197 million yuan. As of the end of 2025, the company’s comprehensive and core solvency adequacy ratios were 338.10% and 332.49%, respectively. Its risk ratings for Q2 and Q3 2025 were B.

Industry insiders analyze that the repeated failure of the previous auctions is due to the fact that Xinhua Holdings’ stake is only 6.59%, making it a financial secondary shareholder without operational control. Since China Xinhua Life has not yet turned profitable, short-term investment returns are uncertain, deterring potential buyers. Pan Helin also noted that this reflects a slowdown in the insurance industry, especially the survival pressure on small and medium insurers. Additionally, it indicates that the value of shell resources has diminished.

Currently, the phenomenon of failed auctions for small and medium insurers’ equity is common. The Daily Economic News reports that two shares of Ancheng Property & Casualty Insurance have gone through multiple rounds of auction on Alibaba Asset Platform, both ending in no bids. For example, one stake of 4.634 million shares had an starting price of 74.1446 million yuan at the end of 2025, now reduced to 35.0253 million yuan; another stake of 135 million shares had an starting price of 216 million yuan, now down to 102 million yuan, with both decreasing by over 50%.

On December 22, 2025, Minsheng Life’s 6.17% stake was listed for transfer on the Beijing Stock Exchange, with a negotiable price and potential for split transfer. The disclosure deadline is June 17, 2026. As of now, the transfer has not been completed.

[Cover image source: AIGC]