• Fri
  • Oct 31, 2014
  • Updated: 1:34pm

Chart Book

Chart Book is featured daily column at SCMP.com and in print in the South China Morning Post. It brings readers a combination of exclusive sentiment barometers on equity markets, practical technical analysis flagging likely moves across a range of asset classes, and smart graphics that offer insight into evolving market trends.

BusinessMoneyMarkets & Investing

Chart of the day: Stress-testing mainland insurers

PUBLISHED : Thursday, 24 July, 2014, 12:23am
UPDATED : Thursday, 24 July, 2014, 4:49am

Fears of rising mainland default risks have set investors scrutinising the exposure of insurers to "non-standard" and growth-levered assets - those potentially most susceptible to losses if the credit bubble bursts. But analysis by Macquarie Bank pinpoints traditional assets as the real danger for insurer enterprise values in the event of widespread defaults, not their more exotic holdings. Almost all of the 9 per cent to 25 per cent decline in enterprise values that a bursting bubble might trigger would come from stocks, property and bond holdings. "We consider China Life to have the safest book," Macquarie analysts wrote in a note to clients. "At the other end of our risk spectrum are Taiping and Ping An."

 

Share

Related topics

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

 
 
 
 
 

Login

SCMP.com Account

or