Ping An Asset Management stake in PSBC H-share rises to 16.01%: HKEX

Ping An Asset Management stake in PSBC H-share rises to 16.01%: HKEX

Ping An Asset Management (PAM) has significantly increased its stake in the H-shares of Ping An Bank (PSBC) to 16.01%, as reported by the Hong Kong Exchanges and Clearing Limited (HKEX). This move comes amidst a broader trend of increased investment in the Hong Kong stock market by southbound funds, with notable net buys in top-performing shares such as China Life and Tencent [1].

The latest figures from Soochow Securities indicate that southbound funds' net buys of Hong Kong stocks last week (August 18-22) saw substantial inflows, with China Life and Tencent leading the pack [1]. This trend suggests a growing interest in the Hong Kong market, which has seen significant gains this year, with Hong Kong shares rising by 30% and the Shanghai composite index surging more than 18% [2].

PAM's decision to bolster its stake in PSBC H-shares aligns with the broader strategy of Ping An Insurance to allocate more funds to the equity market, particularly high-dividend and high-yield assets, including high-tech and AI-related companies [2]. This shift is a response to the historically low yields on long-term Chinese government bonds and the robust performance of the stock market.

Ping An Insurance, with its substantial investment funds of six trillion yuan (S$1 trillion), has been actively seeking to enhance its portfolio returns through strategic investments in the equity market. The insurer's co-CEO, Michael Guo, has indicated that the company plans to increase its allocation to the equity market, potentially benefiting from the current market conditions [2].

The rise in PAM's stake in PSBC H-shares is a significant development for both Ping An and the broader financial sector in Hong Kong. It reflects the growing confidence in the Hong Kong market and the potential for further investment in high-performing stocks. As the Chinese economy continues to evolve, investors are likely to remain vigilant for opportunities that align with their risk profiles and investment objectives.

References:
[1] http://www.aastocks.com/en/stocks/analysis/stock-aafn/02318/0/hk-stock-news/1
[2] https://www.businesstimes.com.sg/companies-markets/banking-finance/chinas-ping-insurance-eyes-more-investment-high-yield-high-tech-stocks-ceo-says