People familiar with the matter do not expect any Chinese group to launch a bid for American International Assurance when the first-round deadline expires today.

However, asked at a press conference about China Life's interest in AIA, Li Kemu, vice-chairman of the China Insurance Regulatory Commission, said: “They are currently still in talks and we are paying close attention to it.”Mr Li said that his insurance watchdog had a favourable view towards AIA assets in Hong Kong and China. “We think AIA is a good company. At least its assets in China and Hong Kong are pretty good.”

The Financial Times reported this month that Bank of China had considered bidding for AIA, the leading pan-Asian life insurer. However, people familiar with the matter said the lender had decided against joining an auction on grounds of valuation and its low risk appetite.