Ping An 2318

Ping An 2318

Postby winston » Thu May 08, 2008 2:05 pm

I'm also looking for a chance to buy a put on Ping An..

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China's Ping An to go ahead with massive share sale despite jitters

China's Ping An Insurance will go ahead with a massive share sale in Shanghai, state media said Thursday, even though reports of the firm's plans have contributed to recent jitters in the stock market.

Ping An said in January it would sell 1.2 billion yuan-denominated A shares and 41.2 billion yuan (5.9 billion dollars) of convertible bonds with warrants, triggering widespread criticism for its large impact on liquidity.

A report in the state media Wednesday suggested the company might seek to dilute the impact on the market by issuing shares not just in Shanghai but also in Hong Kong.

However, company spokesman Sheng Ruisheng denied this, saying Ping An would issue the new shares only in Shanghai, according to Thursday's China Securities Journal.

Investors have worried that an already weak stock market may not be able to absorb such a massive inflow of new equity, and it has been partially blamed for a deep correction in Ping An's shares and the overall market.

Speculation of Ping An pushing ahead with the fund-raising plan were badly received by investors, as its A shares tumbled 8.07 percent to 62.08 yuan and Hong Kong-listed shares fell 4.57 percent to 72.0 Hong Kong dollar (9.2 US dollars).
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Re: Ping An 2318

Postby winston » Tue May 13, 2008 4:09 pm

Got some puts on Ping An. Capital gains this year would be much lower than next year. Ping An is also sitting on some unrealized capital losses at Fortiss.

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Ping An Seeks More Overseas Investments, Cheung Says (Update2)

By Josephine Lau

May 13 (Bloomberg) -- Ping An Insurance (Group) Co., China's second-largest insurer, will seek more overseas investments, President Louis Cheung said today as shareholders approved the firm's plan to issue additional Hong Kong stock.

``We have a lot of cash to spend, though we're also mindful of global volatility and currency risk as we look overseas,'' Cheung said at an annual meeting in Shenzhen today, where shareholders passed a proposal to sell as much as 20 percent of existing Hong Kong-listed shares. ``Buying euro-denominated assets fits into our long-term goal to spread risk globally.''

The Shenzhen-based insurer is replenishing its coffers after investing almost 4 billion euros ($6.2 billion) in Belgium's Fortis since November. Fortis agreed in March to sell half of its asset-management unit to Ping An for 2.15 billion euros. The Chinese insurer bought 4.2 percent of Fortis for 1.81 billion euros in November.

``Shareholders feel very cautious about any overseas acquisitions by Ping An right now,'' said Tony Zheng, a Shanghai- based fund manager at Bank of Communications Schroder Fund Management, which owns Ping An stock. ``There's a lot of uncertainty about subprime and currency risk as the Chinese yuan continues to appreciate. I'd want to hear more specifics.''

No Timetable

Ping An had no timetable for its proposed share sales in Hong Kong and in Shanghai, Chairman Peter Ma said. Shareholders approved a proposal to sell as many as 1.2 billion new shares in Shanghai at a March 5 meeting.

Ping An, part-owned by HSBC Holdings Plc, announced last week it won't apply for regulator approval to offer additional stocks in mainland China for at least six months. The company's Shanghai-traded stock plunged 36 percent since the plan was disclosed on Jan. 18.

``The market's reaction to our A-share refinancing plan showed that we need to be more transparent and communicative with our shareholders,'' Ma said at today's meeting. ``We thought there was plenty of liquidity in the Chinese market, but underestimated how much of an impact the global subprime crisis would have domestically.''

Ping An would put more money in bonds, and had no plan to reduce its equity investments, Cheung said today. China's benchmark CSI 300 Index declined 28 percent this year.

The insurer aimed for its equity investments to make up between 15 percent and 20 percent of its portfolio, Cheung said.
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Re: Ping An 2318

Postby winston » Wed May 21, 2008 10:20 am

Just covered my puts. Small loss.

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BROKER CALL - Ping An Insurance H-share target raised to 90 hkd - Credit Suisse

HONG KONG (XFN-ASIA) - Credit Suisse raised its target price on Ping An Insurance to 90 hkd from 76 and maintained an "outperform" call on the mainland insurer, citing continued premiums growth.

Ping An's four months to April premium income amounted to 35.1 bln yuan for the life insurance business, while property and casualty insurance premiums stood at 9.9 bln yuan.

"In life insurance unit, growth momentum remains solid although it appears to be fading slightly," Credit Suisse said.

It noted that the Jan-April life insurance premium income represents 27.5 pct growth year-on-year, with April income alone up 16 pct.

It said, however, that growth in property and casualty insurance has hit a wall.

"While year-to-date growth is still very respectable at 28.9 pct year-on-year, April saw a 2 pct year-on-year contraction in premium volumes," it said.

Ping An shares today closed down 1.25 hkd or 1.77 pct at 69.45.
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Re: Ping An 2318

Postby winston » Thu Jul 03, 2008 7:52 am

Used to have a put on it but sold too early :(

Ping An shares thrashed as move to help Fortis adds to fears
Thursday, July 03, 2008

Investors dumped Ping An Insurance (2318) shares yesterday on rumors - denied by the firm - that China's second largest insurer was evading tax.

Shareholders were also annoyed over a move to pump more money into the troubled Belgian Fortis Group.

Ping An issued a statement last night dismissing the tax evasion rumors but confirming the tax bureau is conducting a regular checkup on tax expenses of the insurer and its subsidiaries. "[The rumor] was totally without grounds. The [checkup] is a regular practice and hasn't finished yet," a statement filed with the Hong Kong stock exchange said.

Analysts said investors were not pleased with the insurer's plan for a mega sale of up to 160 billion yuan (HK$181 billion) worth of new shares earlier this year. The decision to hold on to its 5 percent stake in the troubled Fortis Group by investing another 75 million euros (HK$923.5 million) did not leave investors overjoyed either.

Ping An shares in Shanghai fell by the 10 percent limit and were suspended from trading after reaching 43.04 yuan. In Hong Kong, they dropped 7.76 percent, to close at HK$53.50.

An analyst said mainland regulators were not pleased as the plan to issue new shares has been blamed for sparking the slide in A shares since early this year. KATHERINE NG
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Re: Ping An 2318

Postby winston » Fri Jul 04, 2008 10:26 am

hmm... whether they take an impairment charge or not, there is an unrealized loss already

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Ping An Insurance (Group) Co of China <601318.SS> <2318.HK> issued a statement late on Thursday that it would not take any impairment charges for the first half-year related to its investment in Dutch-Belgian financial services group Fortis , the second time in as many days the insurer issued a statement to address market rumours after a steep two-day slide in its share price.
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Re: Ping An 2318

Postby winston » Fri Jul 04, 2008 11:01 am

Not vested. From UOB-Kay Hian:-

Fortis investment will not have an impact on current year EPS. Fortis’ share price has fallen from Eu18.37 at the beginning of this year to Eu10.50. Based on the recent share price, Ping An is looking at approximately Rmb9.1b of unrealised losses stemming from its 4.99% stake in Fortis.

However, as Ping An considers the investment to be strategic in nature, it is classified as available-for-sale (AFS), and any unrealised losses under such classification are reflected through a reserve under shareholder’s equity, and not reflected under the income statement.

Therefore, we do not expect Ping An’s current year earnings to be affected by the fall in Fortis’ share price.

Purchase of additional Fortis shares will come at a very low price. Another concern of investors is Ping An’s decision to participate in Fortis’ share placement to maintain its 4.99% stake in Fortis. We estimate the purchase of the additional 7.5m Fortis shares will cost Ping An roughly
Rmb800m
, based on an offer price of Eu10/share. Despite the difficulties Fortis is currently facing, we believe that the price is very attractive, considering that Fortis is currently trading at 0.68x P/B and 5.41x FY08 PE.
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Re: Ping An 2318

Postby winston » Fri Jul 04, 2008 10:52 pm

Ping An Insurance (2318.HK: Quote, Profile, Research, Stock Buzz) (601318.SS: Quote, Profile, Research, Stock Buzz) clawed back 3.8 percent after dropping nearly 16 percent in the past two sessions amid speculation the firm faced problems related to a tax audit. The company has denied the speculation. [ID:nSHA343105]
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Re: Ping An 2318

Postby LenaHuat » Wed Jul 16, 2008 9:15 am

Fortis Bank had to issue a press release denying that there was unusual investor withdrawals from the bank. PA's share are likely to slide even further as the contagion effect of the US crisis rubs deeper into Europe.
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Re: Ping An 2318

Postby la papillion » Wed Jul 16, 2008 10:10 am

Hmm, if not wrong, HSBC had a stake in ping an too. Insurance in China should be good in the longer term, i feel, as more pple gets weathier and realise the importance of insurance.
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Re: Ping An 2318

Postby LenaHuat » Wed Jul 16, 2008 10:37 am

No, no:
HSBC signs agreement to sell its stake in Ping An Bank16 February 2007

HSBC, which owns 19.9 per cent of Ping An Insurance (Group) Company of China Limited (Ping An Group), has entered into an agreement to sell its 27 per cent stake in Ping An Bank Limited to Shenzhen Commercial Bank Company Limited (SZCB), which is an 89.36 per cent owned subsidiary of Ping An Group.

The transaction is part of Ping An Group's consolidation of its banking businesses within SZCB. HSBC is supporting its Chinese partner in this endeavour. The consideration is expected to be US$29.4 million (approximately RMB228.7 million), subject to a review of Ping An Bank's audited net asset value as at 31 December 2006.
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