Volatile markets push Ping An into fixed income

Ping An Insurance said it would add holdings in fixed-income investments and bonds in the second half of this year as capital markets remain uncertain on tight liquidity.

"The mainland economy has stabilised but there are uncertainties in the medium and long term," said Timothy Chan, Ping An's chief investment officer. He expects tight liquidity to add pressure to the market.

Ping An would maintain a stable investment strategy, said Chan, and would increase fixed-income investments and bonds from both capital and non-capital markets.

Analysts were upbeat about the balanced growth of Ping An's insurance business, investment income and contributions from its banking unit, but the volatility in the capital markets remained a concern.

The fluctuation in value of Ping An's equities investments would be a potential risk in the second half, an analyst at China Merchants Securities said in a research note.

Chan said heavyweight stocks in the market would see pressure in profitability but the company would maintain its long-term investment because the stocks were low in valuation and offered high dividends.