UPDATE: Jefferies Initiates Coverage on China Life Insurance at Hold

Jefferies initiates China Life Insurance

at a Hold rating. Jefferies notes, “We initiate coverage on China Life at Hold with a price target of HK$20.0. China Life is trading at trough valuation of 1.34x/5.5x 12E P/EV and NBVM (vs. 5-year historical average of 2.6x and 28x). However, we believe the past is not a good reference point and think China Life faces challenges ahead before it can rerate, especially given its ongoing weak growth.” China Life Insurance closed at $18.96 on Friday.