Few people in China have insurance

China Life is selling US-traded shares, known as American Depositary Shares, as part of its $3bn (�1.76bn) flotation - the biggest in the world this year.

Demand for the shares has been high, with investors keen to invest in China's economy which is growing at about 8% a year.

China Life has about 45% of the mainland Chinese life insurance market.

China Life's president Xianzhang Wang rang the opening bell on the New York exchange.

By mid-morning he had seen his company's shares climb from their offer price of $18.68 to $25.

But the shares fell back to close at $23.72, a climb of nearly 27%.

Potential

China Life was restructured earlier this year specifically to allow an overseas flotation as the Chinese government split it off from its state-owned parent, awarding it all life contracts sold after mid-1999.

China is undergoing rapid economic growth and an equally rapid expansion of its urban middle class.

At the same time, cradle-to-grave government safety nets are steadily being shredded, and an easy entry into the mainland insurance market has proved attractive to foreign investors.