Investors wary of Chinese insurance giant’s actions

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Weak insurance sales and some underperforming investments held back the share price of Ping An Insurance (Group) Co..

The Chinese retail financial services giant, with a market capitalization of around $ 157 billion, is the world’s second-largest insurer after Warren Buffett’s Berkshire Hathaway Inc. The Shenzhen-based group also operates a bank and has units that provide asset management, consumer loans, healthcare and technology services.

Hong Kong-listed Ping An stocks, which are part of the MSCI China index, have recently fallen 29% during the period since the start of the year and have significantly underperformed the major benchmarks of the Marlet.

The US certificates of deposit of Lufax Holding Ltd., Ping An’s US-listed online lending partner, and fintech services platform OneConnect Financial Technology Co. China Internet and Technology Stocks .

Ping An, one of China’s largest sellers of life, health, and property and casualty insurance, has struggled in recent times with a declining sales force as the overall growth in the industry’s policy premiums. insurance slows down. The company also suffered heavy losses this year from an ill-fated investment in stocks and bonds of China Fortune Land Development Co., a real estate company that defaulted on its debts. In April, Ping An estimated he would suffer a loss of $ 2.8 billion on his $ 8 billion exposure to the developer.


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