Ping An tumbles on unlocking of shares

Shenzhen-based Ping An Insurance (Group) Co<601318><2318>, China's second-largest life insurer, suffered the biggest loss in three weeks in Hong Kong trading yesterday on concern about an oversupply of stock as its 3.1 billion RMB-denominated shares become tradable since March 3, as well as the company will hold a shareholders' meeting to vote on the refinancing plan on Wednesday.

Twenty strategic investors who held 345 million shares of Ping An and 50 institutional investors which handle another 2.78 billion shares are able to sell their shares from Monday.

Shares of Ping An shed 3.4% to close at HK$58.75 on the Hong Kong bourse. Its Shanghai-traded stock closed at RMB 70.11, also registered a loss of 1.5%.

However, analysts said that the unlocking of shares will not cast a big shadow on the stock market as shares of Ping An are undervalued now.

Ping An, which derives about 30% of revenue from equity investments, aims to reduce that dependence by expanding in banking, asset management and securities, sources reported.