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

Questioning AI · The Halving of Equity Prices: How Has the Investment Environment in the Insurance Industry Evolved?

Reporter: Tu Yinghao    Editor: Xu Shaohang

On March 18, JD Auction Platform relisted 200 million shares of China Xinhua Holdings Limited (hereinafter “Xinhua Holdings”) held by China Xinhua Holdings Limited, with an initial auction date set for April 2. The starting price is 102.342 million yuan, approximately 0.517 yuan per share, marking the fourth auction of this equity.

On February 3, 2026, 200 million shares of China Xinhua Holdings 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 original price.

Industry insiders believe that Xinhua Holdings’ urgent sale of insurance equity is a move to recover liquidity through asset disposal. Capital interest in entering the insurance license market has significantly cooled, reflecting not only issues within insurance companies themselves but also the survival pressures faced by small and medium-sized insurers and the shrinking value of shell resources.

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

China Xinhua 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 Insurance.

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

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

According to the latest equity disclosure in January 2026, major shareholders holding over 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 Insurance, 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 Insurance, economist and member of the MIIT Information and Communications Economic 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 bid is only 103.424 million yuan, roughly 0.517 yuan per share, nearly halving the initial auction price in less than two months.

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

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

Financial data shows that China Xinhua Insurance 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 Insurance 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-over-year; net loss was 197 million yuan, with a notable narrowing of losses. As of the end of 2025, the company’s comprehensive and core solvency adequacy ratios were 338.10% and 332.49%, respectively. The risk ratings for Q2 and Q3 2025 were B.

Industry analysts suggest that the repeated failure to sell the equity, which accounts for only 6.59%, is because it is a secondary financial shareholder without operational control, and China Xinhua Insurance has yet to turn profitable. Short-term investment returns are uncertain, discouraging potential buyers. Pan Helin also noted that this reflects a slowdown in the insurance industry itself, especially the survival pressures on small and medium-sized insurers. Additionally, it indicates that the value of shell resources has diminished.

Currently, the phenomenon of failed equity sales among small and medium insurers is common. The Daily Economic News reports that two shares of Ancheng Property & Casualty Insurance have undergone multiple auctions on Alibaba Asset Platform, both ending without 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 of 135 million shares had an starting price of 216 million yuan, now down to 102 million yuan. Both saw price reductions of over 50%.

On December 22, 2025, Minsheng Life’s 6.17% equity 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, but the transfer has not yet been completed.