Ping An set to boost offshore deal activity by Finance News Bulletin

Published: 19/12/07

All times are London time Search information in the FTcom siteSearchSearch speech marks in the FTcom sitespeech marksCOMPANIES Financial servicesBreadcrumb trail navigation:FT house > Companies > By sector > Financial servicesServicesPing An Insurance, China’s second-biggest life assurer, has won administration approval to invest up to 15 per cent of its total possessions in offshore markets, up from the preceding limit of 5 per centThe Chinese insurer, which is 17 per cent owned by HSBC, is the first of its peers to get the green light to spend more of its assets abroad under the so-called fit domestic institutional investor scheme

Ping An said it would use its own money to invest in the Hong Kong store market and “major overseas equity deals” With rapidly expanding possessions that reached nearly Rmb624bn ($843bn) at the end of the third district, Ping An will be allowed to spend more than Rmb10bn overseas next yearPing An revealed last week that it had paid $2

7bn for 42 per cent of Fortis, making it the solitary largest shareholder in the Belgo-Dutch banking and cover companyIt was the first major overseas investment by a Chinese insurer and came the daylight hours after the chairman of rival porcelain Life Insurance said he was looking for offshore gaining targets“It appears Ping An used its insurance assets under the new share for the Fortis investment,” said Dominic Chan, manager of financial institution research at CLSA, a Hong Kong-based investment store

Mr Chan said he expects Ping An’s major rivals, such as China Life and China Pacific Insurance, to soon receive endorsement to raise their offshore investments as wellIn July, the China Insurance Regulatory charge formally raised the cap on cover companies’ offshore investments from 5 per cent to 15 per cent of total possessions as of the finish of the previous yearWith total assets of Rmb2,895bn by the end of October, Chinese insurers will hypothetically be able to invest at least Rmb434bn in abroad capital markets next yearThe Chinese insurers have not yet won endorsement for overseas acquisitions but the largest ones all have determined plans to take more strategic stakes in abroad competitors to get bigger beyond their borders and acquire management and product development expertise

China Pacific, 199 per cent owned by US coup firm Carlyle, on Tuesday won the endorsement of the securities regulators to sell 1bn shares in Shanghai in an initial public offering Copyright The Financial era Limited 2007Ping An buys Fortis stake - Nov-29China’s insurers open wallets for overseas possessions - Nov-30Lex: Ping An buys into Fortis - Nov-29China Life eyes bet in foreign insurer - Nov-28Lex: Ping An’s ebullient IPO - Mar-01Ping An shares fly on Shanghai debut - Mar-01More from this sectorMaverick porcelain Payment Profiles: 99Bill, Hot Out of the Gates, but Sustainable nonconformist China Research12/3/2007$1000nonconformist China Payment Profiles: porcelainpay, Providing Online Payment Solutions for Chinese Banks Maverick porcelain Research12/3/2007$1000BlogsBrussels BlogCharles PretzlikClive CrookDear LucyEconomists’ ForumEnergy FilterJohn GapperGideon RachmanTech BlogThe Undercover EconomistWestminster BlogWillem Buiter’s MavereconRegional pagesLatin American agendaChinaIndiaBrusselsInteractivePodcastsDebates & pollsAsk the expertMarkets Q&AJobs and classifiedsBusiness for saleContracts & tendersJobs Search Type your look for criteria below:* Minimum delay 15 minutesAll times are London timeFT HomeSite mapContact usHelpAdvertise with the FTMedia centreStudent offersFT ConferencesFT Research CentreFT SyndicationCorporate subscriptionsFT GroupPartner sites: Chinese FT

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