China Pacific to delay HK IPO in poor market -sources

SHANGHAI/HONG KONG, July 24 (Reuters) - China Pacific Insurance (Group) Co Ltd (601601.SS), China's third largest life insurer, has decided to delay its proposed Hong Kong listing after sharp declines in its Shanghai-listed share price, two sources familiar with the situation said on Thursday.

China Pacific's pricing of IPO shares in Hong Kong is restricted due to a pledge by the Shanghai-based insurer not to price those shares below the level of their Shanghai IPO price of 30 yuan each, or about HK$34.3 at the current exchange rate.

China Pacific has said it plans to list in Hong Kong no later than Sept 14 after securities regulators approved its Hong Kong IPO plan with conditions including its price restrictions.

On March 26, China Pacific's local-currency A shares tumbled as much as 9.4 percent, making it the first major Chinese stock since May 2006 to fall below its IPO price. Its shares closed up 4.23 percent at 20.71 yuan on Thursday, still far from its IPO price of 30 yuan apiece.

As a result, senior executives at China Pacific, partly owned by U.S. private equity firm Carlyle Group [CYL.UL], have been in talks over the past few months with Chinese securities regulators to seek their approval for a waiver for its Hong Kong IPO price restrictions. It also needs to gain shareholders' approvals for a new Hong Kong IPO plan.

A representative for China Pacific could not be immediately reached for comment. (US$1=HK$7.8 US$1=6.829 yuan) (Reporting by George Chen in Shanghai and Kennix Chim in Hong Kong; Editing by Ken Wills)