Satisfying Interests of International Investors and Stakeholders Presented by Davy Lee Past President (2002) The Hong Kong Institute of Chartered Secretaries May 2008

CONCERNS OF INVESTORS/STAKEHOLDERS 1.RISKS 2.LAW ENFORCEMENT 3.CORPORATE GOVERNANCE - 1 -

LAW ENFORCEMENT 1.Common Law vs. Code Law Ball, R., S.P. Kothari and A. Robin “The Effect of International Institutional Factors on Properties of Accounting Earnings”. Journal of Accounting and Economics 29, pp.1-51 Common Law : Better timeliness and higher conservatism : Disclosure based 2.Protection of Investors  Property Laws: protection of ownership  Protection of minority’s right 3.Regulators  The Stock Exchange  SEC - 2 -

CORPORATE GOVERNANCE 1.Disclosure/Transparency  Information aymmetry (Information Risk)  Stock price informativeness (SPI) − Developed markets: higher SPI :less volatility -Emerging markets : lower SPI : more volatility 2.IFRS/Int’l Accounting Standards Kim, J.-B. and H. Shi, “ International Financial Reporting Standards, Institutional Infrastructures, and Cost of Equity Capital around the World” SSRN Working Paper (The Hong Kong Polytechnic University) Kim, J.-B., J.S.L. Tsui and C.H. Yi, “The Voluntary Adoption of International Accounting Standards and Loan Contracting arcound the World.” SSRN Working Paper (The Hong Kong Polytechnic University) - 3 -

CORPORATE GOVERNANCE 3.Audit Quality DeAngelo, L., “Auditor Szie and Auditor Quality”, Journal of Accounting and Economics 1, pp Hay, D. and Davis, D., “The Voluntary Choice of an Auditor of any Level of Quality”, Journal of Practice & Theory 23, 2 (September), pp Foreign Institutional Investors Gul, F., J.-B. Kim, and A. Qiu, “Ownership Concentration, Foreign Shareholding, Audit Quality and Firm-specific Return Variation: Evidence from China.” SSRN Working Paper (The Hong Kong Polytechnic University). Kim, J.-B and C.H. Yi, “Does Trading by Foreign Investors Contribute more to Stock Price Informativeness then trading by Domestic Institutional Investors? Evidence from Korea.” SSRN Working Paper (The Hong Kong Polytechnic University) - 4 -

China Life Corporate Governance towards international best practice Oct., 2006, Hong Kong - 5 -

Agenda 1. Ownership Structure 2. Share Price Performance 3. Structural Governance 4. Changes in Corporate Governance since IPO 5. Stakeholders’ Focus 6. Indications of China Life Practice 7. What Next - 6 -

Ownership structure China Life Insurance (Group) Company Public Shareholder China Life Asset Management Company Limited Pension Company P&C Company 72.2 ％ 40 ％ 60 ％ 20 ％ 27.8 ％ 60 ％ 55 ％ 40 ％ 25 ％ - 7 -

Share price performance China Life vs. market indexes 2628 HK HSCEI HSI Performance since Dec. 17, 2003: 2628 HK ： % HSCEI ： % HSI ： % As of Sept. 19, 2006 ： 2628 HK closed at HKD 15 per share China Life’s total capitalization reached HKD billion, which made China Life the largest listed life insurer and the 6 th largest listed insurer in the world The global largest IPO in 2003 Announcement of appointing Mr. Yang Chao as President on June 1, 2005 Announcement of separating roles of Chairman and President on January 6, 2006 Class action First time to disclose EV in annual report Announcement of appointing 3 additional independent non-executive directors on June 18, 2004 China Life HSCEIHSI source ： Bloomberg ； data as Sept. 19, 2006 corporate strategy conveyed to the capital market - 8 -

Structural governance Complete corporate governance structure Board of Directors Audit Committee Nomination and Remuneration Committee Risk Control Committee Strategy Committee Supervisory Committee General Meeting 5 INEDs among 10 Directors of the board All committees chaired by INEDs The structure an principles of the corporate governance fully comply with regulations Harmonization of corporate governance in line with regulatory requirements in China, Hong Kong and US Strong supportive platform Effective complementary by-laws, rules and policies regarding corporate governance 3 INEDs 2 INEDs 1 Non-executive Director 1INED 1 Non-executive Director 1 Executive Director 1 INED 1 Non-executive Director 1 Executive Director Attributes Company Secretary, Board Secretary, Qualified Accountant Board Secretariat - 9 -

Changes in corporate governance since IPO Built up a complete corporate governance structure Set up a decision making mechanism with board of directors at the core Established a business development model focusing on profitability and value growth Formulated clear strategy, objective and guideline policies Transparent, timely and consistent disclosure policy Strengthened risk management, internal control and compliance Active investor relations Built up a complete corporate governance structure Set up a decision making mechanism with board of directors at the core Established a business development model focusing on profitability and value growth Formulated clear strategy, objective and guideline policies Transparent, timely and consistent disclosure policy Strengthened risk management, internal control and compliance Active investor relations -10-

Stakeholders’ focus Fundamentals performance Value growth Fundamentals performance Value growth Shareholders Credibility Service Protection Policyholder dividend Credibility Service Protection Policyholder dividend Policyholders Compliance Solvency Margin Compliance Solvency Margin Regulators Corporate Development Personal career Corporate Development Personal career Employees Stakeholders -11-

Indications of China Life practice What good corporate governance matters Add premium to share price Establish an effective mechanism of check and balance Ensure consistent strategy, sustainable growth and clear objectives Improve transparency, internal control and compliance Cultivate a corporate governance culture focusing on execution Retain its corporate personality while acting in line with the international best practice What good corporate governance matters Add premium to share price Establish an effective mechanism of check and balance Ensure consistent strategy, sustainable growth and clear objectives Improve transparency, internal control and compliance Cultivate a corporate governance culture focusing on execution Retain its corporate personality while acting in line with the international best practice 12

What next Further optimize shareholder structure domestic listing in A share market introduce strategic investors Further clarify role of the board and establish an effective corporate governance mechanism Further identify governance boundaries Continue to cultivate a corporate governance culture Further optimize shareholder structure domestic listing in A share market introduce strategic investors Further clarify role of the board and establish an effective corporate governance mechanism Further identify governance boundaries Continue to cultivate a corporate governance culture 13

Thank you ！ -14 -

Recent Development of China Life 1.Concentrate on Investors Relationship − Regular visits with international institutional investors − Responsive in answering their questions − Roadshows to major financial markets 2.Foreign Institutional investors: Long Position in H-Shares (%) Deusche Bank HSBC 5.32 JP Morgan 7.50 KBC Group 5.72 UBS

Other Major Listed Companies in PRC Foreign InvestorsShareholding at IPO Bank of Communication Co. Ltd.HSBC19.90% China Construction Bank Corp.Bank of America8.739% China CITIC Bank Corp. Ltd.Banco Bilbao Vizcaya7% (approx.) Argentaria S.A

Thank You