(Yicai Global) Dec. 24 -- Dajia Life Insurance has sold stock it owned in Gemdale Group for a sixth time this year, with the latest sale amounting to 5 percent of the Chinese real estate giant’s shares outstanding.

Dajia Life sold about 226 million of the Shenzhen-based developer’s stock between Dec. 15 and 23, Gemdale said late yesterday without providing a reason for the divestment. The sale has reduced the insurer’s stake to 5.43 percent.

The move was likely prompted by poorer earnings at developers amid China’s sluggish real estate market, according to analysts.

Gemdale’s net profit fell 39 percent to CNY1.8 billion (USD282.6 million) in the first half from a year earlier, according to its semi-annual financial report. Its gross profit margin was 17.36 percent, down 19.61 percentage points, with several core profit indicators showing a downward trend.

Beijing-based Daijia Life cuts its holding in Gemdale for the first time this year in September, when it twice sold the builder’s stock -- 105 million shares, or 2.34 percent of Gemdale’s total outstanding -- according to the developer.

Before September, Dajia Life was Gemdale’s second-largest shareholder, with 922 million ordinary shares, or a 20.43 percent stake. Its intensive selling of Gemdale is a microcosm of the subtle change in the strategy of insurance companies to invest in real estate firms, according to experts.

Taikang Life Insurance, Junkang Life Insurance, Hexie Health Insurance, Huaxia Life Insurance, and Sunshine Life Insurance have all recently reduced their holdings in developers, including Financial Street Holdings, Yango Group, China Merchants Shekou Industrial Zone Holdings, Shenzhen Overseas Chinese Town, and Beijing Capital Development.

And China Life Insurance has pared its stake in China Vanke for five straight quarters, with its interest dropping to 0.73 percent from 2.16 percent.

“As a long-term investor, we must thoroughly study the changes and guidance of national policies, and carry out a forward-looking equity allocation,” an official at China Life said.

Editor: Peter Thomas