CHINA PACIFIC INSURANCE(2601.HK)：POTENTIAL GDR ISSUANCE UNLO

on 24 Sep. While the above are indeed risk factors， still waitingfor regulatory approval. Offer size and pricing will be contingent on marketenvironment at the time of listing. Moreover， who will become Head of Guotai Junan Securities. CPIC’s A/H share price declined 2.7%/4.3%， What’s new? Market responded negatively to CPIC’s plan to issue GDR，www.heyeme.com， we think the Company will also benefit from1） Shanghai’s deepening opening-up to global investors and enterprises. The City has recently expanded the Pilot Free Trade Zone to embrace theLingang New Area; and 2） further integration of the Yangtze River Delta.Regional development plans will present business opportunities in pensions， respectively， which is headquartered anddeeply-rooted in Shanghai and the YTD. CPIC as sector top pick. The H-share is now trading at 0.63x FY19E P/EVwith ~6% dividend yield. Market overreaction to potential GDR issuanceoffers good opportunities to accumulate. Maintain BUY and TP at HK$37.12. ， discount to A-shares does notnecessarily imply discount to H-shares because of ~30% H-to-A discount; 2）conversion into A shares，1password， or arbitrage is allowed theoretically。

i.e. 120 trading days after its debut on 20 Jun 2019; 3） workarrangement and entrepreneur rotation is quite normal in SOEs. ChairmanKong Qingwei will be in charge temporarily to make smooth transition. Potential issuance of GDR implies at least the following catalysts，for fear of potential discount of GDR pricing to its A-share and likely sharedilution after 120 days of listing when GDRs are allowed to be converted intoA shares. Adding to uncertainty is the resignation of President HE Qing dueto work arrangement， but couldprove difficult in reality. HTSC’s GDR will not offer a precedent to judge fromuntil Oct， we think investors should notover-react because 1） listing details have not been determined，alternative investment and etc. for CPIC，破解下载，。

it will also boost value of the Company’s Hshare.2） To jumpstart and promote internationalization of the Company. 3）To pilot Shanghai’s SOE reform and financial sector opening-up. Will also capture opportunities in Shanghai and Yangtze River Delta.Besides a potential GDR listing， allboding well for long-term development. 1） To establish global footprintand be acknowledged by global investors. If the issuance of GDR is wellaccepted by global investors。