Ping An aims to cut equities weighting

Ping An Insurance Group, the second-biggest insurer by premium, says it is gradually moving into property and corporate bonds to reduce its dependence on equity returns amid the raging volatility in capital markets.

The lacklustre performance of the mainland stock market and write-offs in loss-making securities have forced it to look for more reliable sources of cash flow.

"We plan to lower the weighting of equities in our overall portfolio and focus on investing in stocks with low valuations," Timothy Chan, Ping An's chief investment officer, said in a post-results briefing.

"Alternative investments such as commercial property in first- and second-tier cities and corporate bonds could offset the negative equity contributions."

Chan said the weighting of property investment in Ping An's portfolio could be raised up to 10 per cent from the current 1.5 per cent.

The group's total investment yield dropped to 2.9 per cent last year, compared with 4 per cent for the previous accounting period, while total investment income dropped by 13 per cent to 25.7 billion yuan last year.