(Yicai Global) Jan. 20 -- ZhongAn Online P&C Insurance’s stock price took off after investors were reassured by Chinese fintech giant Ant Group reportedly saying that it was still optimistic about the online insurer’s prospects in spite of trimming its stake.

ZhongAn [HKG: 6060] closed 6.3 percent up at HKD29.55 (USD3.79) today, after earlier gaining as much as 8.1 percent. So far this year, the shares have risen 1.5 percent.

Ant sold about 46.5 million ZhongAn shares on Jan. 18, paring the major shareholder’s stake to 10.37 percent from 13.54 percent, according to the Hong Kong bourse’s disclosure of interests system. The stock fell 6.8 percent that day.

“The reduction in our ownership stake was a normal course investment decision. While our investment in ZhongAn decreased, the strategic partnership between our two companies will continue.  Ant Group remains confident in ZhongAn’s long-term growth.” The Hangzhou-based firm told Yicai Global today.

China’s first online-only insurer was jointly set up in 2013 by Ant, internet giant Tencent Holdings, and the country’s biggest insurer Ping An Insurance. It landed on the Hong Kong Stock Exchange in September 2017. Tencent and Ping An own 10.2 percent each.

Shanghai-based ZhongAn turned its first annual net profit in 2020, logging CNY550 million (USD86.7 million). In the first half of last year, profit jumped 54 percent to CNY755 million from a year earlier.

Editor: Futura Costaglione