Ping An to Finance via H-share Placement, Suspending Trading

Ping An Insurance (Group) Company of China, Ltd. (Ping An, SHSE: 601318, and SEHK: 2318), the second largest insurance conglomerate in the nation, suspended trading on both the A-share and H-share markets as it is preparing for financing via share placement in Hong Kong.

Ping An Insurance Spokesperson Sheng Ruisheng told journalists that the company now is reviewing matters related to the H-share placement, so the trading on the two bourses was suspended. However, the giant has not had a financing plan on the stock market in Mainland China. The giant later will issue an announcement specifying the H-share placement quota, price, and use of the raised capital.

Peng Yulong, an insurance analyst at Guotai Junan Securities Co., Ltd., said that the insurer also will pour the raised capital into supplementing capital. He ever predicted the insurer will finance CNY 30 billion to CNY 50 billion from simultaneous financing on both A-share and H-share market. However, if it only finances from Hong Kong, the financing quota will be adjusted accordingly.