Chinese Insurers Buy Into Covid-19-Hit Banks, Real Estate Firms
Liao Shumin
DATE:  Mar 19 2020
/ SOURCE:  yicai
Chinese Insurers Buy Into Covid-19-Hit Banks, Real Estate Firms Chinese Insurers Buy Into Covid-19-Hit Banks, Real Estate Firms

(Yicai Global) March 19 -- Chinese insurance companies have been increasing their investment in sectors such as banking, real estate, and hospitality lately amid the Covid-19 epidemic that has pressed stock prices down.

Nearly a hundred Chinese insurance companies have been studying how to invest in more than 500 listed firms this year through March 18, Economic Information Daily reported, citing data provider Wind. Four of them have upped their shareholding to more than 5 percent in at least five listed firms each by then, spending CNY2.8 billion (USD395.8 million). 

Buying when the market is full of fear instead of greed is a strategy that each fan of the Oracle of Omaha knows. The outbreak has particularly been pushing retail, transport, and real estate shares down amid store closures and canceled trips.

China Life Insurance Group has recently boosted its holding of Agricultural Bank of China by purchasing 40 million of the lender's Hong Kong-listed shares for HKD124 million (USD16 million) while increasing its shareholding ratio to 7.04 percent from 6.91 percent, according to data from the Hong Kong Stock Exchanges and Clearing.

Insurance companies are expected to increase medium and long-term investment in stocks and funds, Zhongan Fintech Research Institute said in a report. Stable investors prefer stocks related to consumption or those that pay high dividends amid the virus epidemic, it added.

In the mainland, Taiping Life Insurance has invested CNY1.9 billion in property developer Grandjoy Holdings Group. Huatai Asset Management spent CNY279 million (USD39.4 million) to buy 8 percent of real estate firm Guochuang Hi-tech Material's equity. 

In Hong Kong, China Pacific Insurance and its affiliates acquired some of Ganfeng Lithium's shares. Its life insurance unit bought into hospitality firm Shanghai Jin Jiang Capital via the Qualified Domestic Institutional Investor scheme.

Editor: Emmi Laine 

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Keywords:   China Life Insurance (Group) Company,Agricultural Bank Of China,Covid-19