Four consecutive failed auctions, with prices dropping over 60%: Xinhua United Holdings "liquidates" Three Gorges Life Insurance with no buyers

[Text by Yu Shan Guan Jin Studio Li Limeng]

On April 3, 200 million shares of Three Gorges Life Insurance Co., Ltd. (“Three Gorges Life”), held by XinHuaLian Holdings Co., Ltd. (“XinHuaLian Holdings” for short), ended again in a failed auction (no bidders) for the fourth time in a judicial auction. The starting price for the fifth auction has been lowered to 72.3968 million yuan, which is roughly 0.36 yuan per share.

Image source: JD Auction Platform

The 200 million shares auctioned in this instance correspond to 6.59% of Three Gorges Life’s shares, representing all of XinHuaLian Holdings’ unpledged equity. If the equity is successfully transferred, XinHuaLian Holdings will completely exit the shareholder list of Three Gorges Life. Since the equity was first listed on the JD Auction Platform in February 2026, it has gone through 4 auctions; the starting price has been reduced from 202 million yuan successively to 161.6 million yuan, 129.28 million yuan, 103.424 million yuan, and finally to 72.3968 million yuan—down by more than 60% compared with the first listing price.

Three Gorges Life has suffered losses for 9 consecutive years, totaling 1.187 billion yuan, with the general manager position vacant for 7 years

Three Gorges Life was established in December 2017. It is the only nationwide life insurance company headquartered in Chongqing, and it is also a state-owned financial enterprise under Chongqing municipality. Since its establishment, the company has failed to escape the quagmire of losses. According to financial data, from 2017 to 2025, Three Gorges Life has posted losses for 9 consecutive years; its cumulative losses since its opening have exceeded 1.187 billion yuan.

Local Chongqing state-owned assets have gradually stepped in since 2023, driving the company’s equity restructuring and capital expansion. In January 2024, the registered capital of Three Gorges Life increased from 1 billion yuan to 1.537 billion yuan; in June 2025, the second round of capital increase was completed, and the registered capital further rose to 3.033 billion yuan, placing it in the top tier in terms of capital scale among small and medium-sized insurance companies. In January 2026, Chongqing Development Investment Co., Ltd. acquired part of the equity held by Chongqing Yufu Capital, becoming the largest shareholder with a 33% stake. At present, the top four shareholders of Three Gorges Life are all state-owned enterprises in Chongqing, and the combined holding ratio of the four companies is as high as 81.88%.

The picture shows the shareholders and equity structure of Three Gorges Life

The position of general manager of Three Gorges Life has been vacant for as long as seven years.

In December 2018, after the resignation of its first general manager, An Yimin, Three Gorges Life successively designated interim persons to perform the duties; however, due to regulatory rules, the interim persons’ cumulative term could not exceed 6 months, and after February 2022, the general manager role fell into a “true vacancy” entirely.

Filling this gap is a “veteran” who has been rooted in Chongqing’s insurance market for more than 20 years. Lei Wanchun started out in grassroots marketing at China Life, gaining comprehensive experience through the complete development of state-owned insurance companies; in 2008, he moved to Sunshine Life and participated in the preparation and establishment of Sunshine Life’s Chongqing branch. He previously served as deputy general manager and general manager of Sunshine Life’s Chongqing branch, and starting in November 2019, he served as assistant general manager of Sunshine Life. He later turned to entrepreneurship and founded Chongqing Hebang Insurance Agency Co., Ltd. In May 2025, he stepped down from the above positions to pave the way for his taking up the role at Three Gorges Life. On January 4, 2026, a written approval issued by the Chongqing Regulatory Bureau of the National Financial Regulatory Administration approved Lei Wanchun to serve as general manager of Three Gorges Life, and he will work alongside Zhang Jun, the chairman who has a state-owned assets background, as his partner.

XinHuaLian Holdings “clears out” Three Gorges Life; the core lies in debt settlement

XinHuaLian Holdings is a large private enterprise, mainly engaged in cultural tourism, chemical new materials, mineral resource development, oil trading, investment, and other businesses. It was once one of the original founding shareholders of Three Gorges Life. In March 2016, XinHuaLian Holdings, as one of the founding shareholders, was approved to participate in the preparation of Three Gorges Life; when Three Gorges Life was established in 2017, XinHuaLian Holdings subscribed to 200 million yuan in capital contribution, with a shareholding ratio as high as 20%, once ranking alongside Chongqing Yufu Capital as the largest shareholder.

However, since 2020, XinHuaLian Holdings has fallen into a severe liquidity crisis, and debt risks have continued to build up. In August 2022, the Beijing No. 1 Intermediate People’s Court ruled to accept XinHuaLian Holdings’ judicial reorganization. In April 2023, the court further ruled on a substantive merger and reorganization of XinHuaLian Holdings with six other companies, including XinHuaLian Mining. After more than two years of reorganization proceedings, the reorganization plan was officially completed and executed in June 2025.

The core reason why XinHuaLian Holdings must “clear out” the equity it holds in Three Gorges Life lies in the reorganization plan’s requirements for debt repayment. After the reorganization process ends, disposing of the financial equity held becomes a key step for collecting funds and paying off debts. According to publicly available information, XinHuaLian Holdings has been in a liquidity crisis since 2020, entered substantive merger and reorganization in 2023, completed the execution of the reorganization plan in June 2025, and the disposal of financial equity has become an important step in advancing debt resolution.

Because Three Gorges Life completed two rounds of large-scale capital increases and share expansions one after another since 2023, XinHuaLian Holdings did not participate in the capital increases. Its shareholding ratio was gradually diluted from 20% at the time of its establishment to 6.59%, and its shareholder ranking also dropped to fifth place. The 200 million shares being auctioned in this instance are precisely all of its unpledged shares. As a key part of the disposal of reorganization-plan assets, they must be monetized as soon as possible to repay the relevant debts.

With the start of the fifth auction, what will become of XinHuaLian Holdings’ 200 million shares of Three Gorges Life remains to be observed.

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