(Yicai) Aug. 13 -- Rui Life Insurance has increased its stake in China Tourism Group Duty Free to 5 percent, a level requiring shareholder disclosure, the Hong Kong Stock Exchange announced.

The insurer bought 151,900 of China Tourism’s Hong Kong-listed stock [HKG: 1880], taking the Beijing-based insurer’s holding to 5.82 million shares and its stake up from 4.87 percent, the bourse said.

The move is usual as insurance companies have tended to favor stocks in the new energy, environmental protection services, or infrastructure sectors, whereas China Tourism specializes in tourism retail.

China Tourism’s stock price has been languishing at a historic low recently. It fell from a high of more than HKD270 (USD34.66) a share last year to HKD47.70 last month, and has edged up slightly since then. The stock is down 32 percent since the end of last year. China Tourism is also listed in Shanghai.

Rui Life also bought 5.26 million shares of Hong Kong-listed China Longyuan Power Group [HKG: 0916] on July 22, lifting its stake to 5 percent from 4.84 percent. The insurer said it used its own funds and those from the universal account insurance liability reserve and the dividend account insurance liability reserve.

Chinese insurers have raised their stakes in Hong Kong-listed firms to 5 percent or more with increasing frequency this year. They have generally been more risk-averse, and fewer of the target companies feature high returns on equity, but more of them do offer high dividends, Huachuang Securities said in a research report.

Editors: Liao Shumin, Tom Litting