Ping An Insurance (Group) Co. shares rose the most in eight months, leading Chinese insurers higher, after HSBC Holdings said it will sell its entire stake for US$9.4 billion to a Thai company, removing investor uncertainty. Ping An, China’s second-largest insurer, advanced 4 per cent to HK$59.95 in mid morning trade, the most since April 13.
The stock was the fourth-biggest contributor to the 0.7 percent advance in the Hang Seng Index and had the third-biggest gain in the benchmark. The insurer’s shares were the most actively traded on the benchmark in terms of volume and value, with 261.79 million shares worth HK$15.45 billion ($2 billion) changing hands so far today.
“The announcement of the sale of the entire stake removed some overhang concern on Ping An’s share price,” Arjan van Veen, a Hong Kong-based analyst at Credit Suisse Group AG, said.
The HSBC deal spurred gains in other Chinese insurers, with New China Life Insurance Co. surging 9 per cent on the Shanghai stock exchange, its biggest gain since June. China Life Insurance Co., the nation’s biggest insurance company, added 2.5 per cent in Hong Kong trading. China Pacific Insurance (Group) Co. jumped 5.2 per cent in Shanghai, its biggest gain since June.
HSBC, Europe’s biggest bank by market value, said it was selling the 15.6 per cent stake at HK$59 a share to Thailand’s Charoen Pokphand Group Co. The price is higher than Ping An’s closing price of HK$57.65 in Hong Kong on Tuesday.
The Chinese insurer welcomes Charoen Pokphand as a long- term strategic investor, Sheng Ruisheng, spokesman for Ping An, said on Wednesday. The company will keep its existing management system, governance model and culture, he said.