Chinese insurers spark off buying spree in mainland property firms
Most eye-catching deal is the share buying by Shenzhen property and insurance group Baoneng in China Vanke
Chinese insurance companies have sparked off a buying spree in mainland property firms’ shares, a move seen by analysts as a “good marriage” that benefits both industries.
They say the pace of buying will accelerate as Chinese insurers need to diversify their asset allocation and have a thirst for property companies with quality assets.
Mainland insurance companies have invested in at least 30 Hong Kong and mainland-listed property firms, according to consultancy China Real Estate Information.
Among the major deals, Ping An Insurance, the mainland’s second-largest insurer, has invested in small developer Landsea and bought shares in the fifth-largest developer, Country Garden. It now owns 9.9 per cent of both developers.
Meanwhile, Anbang Insurance Group and China Life Insurance have invested in Sino Ocean Land, with Anbang owning 29.98 per cent of the developer and China Life 29.99 per cent.
Other insurers with substantial stakes in developers include New China Life Insurance with 9.5 per cent of Jinmao and Hexie Health Insurance and An Bang Life Insurance with stakes of 15.88 per cent and 13.35 per cent, respectively, in Financial Street Holdings.