DeHeng Assisted PICC in RMB 5 Billion Strategic Investment of Insurance Funds into State Grid Xinyuan Group Co., Ltd.

2025-07-28

On July 23, 2025, PICC Capital Insurance Asset Management Co., Ltd. (“PICC Capital”), a subsidiary of the People’s Insurance Company (Group) of China Ltd. (“PICC”), and State Grid Xinyuan Group Co., Ltd. (“State Grid Xinyuan”), a subsidiary of State Grid Corporation of China, signed a capital increase and share expansion agreement at the Beijing Equity Exchange. The investment by PICC totals RMB 5 billion. This capital increase project for State Grid Xinyuan has a total scale of RMB 36.5 billion, making it the largest private equity financing deal in China this year and setting a new record for the largest cash fundraising amount in a state-owned property rights transaction.

As special legal counsel to PICC Capital for its participation in this capital increase project, the DeHeng team, led by partner Wang Zhenghua from DeHeng’s Beijing Office, with primary support from lawyer Li Junchao, provided professional and efficient legal services to PICC Capital, including transaction structure analysis, legal due diligence, issuance of legal opinions and due diligence reports, and the drafting and negotiation of transaction documents. DeHeng lawyers’ services were highly commended by the client.