CIRC asks Ping An for info on stake issue
Source: Bloomberg News |
January 11, 2013, Friday
|
Print Edition
Print Edition
CHINA'S insurance regulator asked Ping An Insurance (Group) Co for more information about HSBC Holdings Plc's proposed US$9.4 billion sale of a stake in the country's second-largest insurer.
The China Insurance Regulatory Commission has done a preliminary review of the application, it said in an e-mailed statement yesterday. It didn't give any details about the information requested.
The sale to Thai billionaire Dhanin Chearavanont's Charoen Pokphand Group is facing speculation that regulators may reject the deal, Mancy Sun and Ning Ma, analysts at Goldman Sachs Group, wrote in a note. China Development Bank, which agreed to fund part of the purchase, canceled its loans because of problems with the rest of the financing, Caixin Online has reported.
"The regulator's statement should have a positive impact on Ping An shares, as it reads like the deal can still possibly go through," said Qiu Peng, a Shanghai-based investment manager at Western Securities Co.
Shares in Ping An fell 1.4 percent to HK$67.80 (US$8.75) in Hong Kong yesterday, after gaining 1.3 percent. HSBC gained 0.6 percent, the same as the Hang Seng Index.
HSBC said on December 5 it agreed to sell its 15.6 percent holding in Ping An to four subsidiaries of CP Group in two phases. The first stage, comprising shares valued at about HK$15 billion, was set for December 7. The sale of the remaining shares requires approval from CIRC by February 1, or an extension of the accord.
"If the deal can't get CIRC approval by then or if the deadline is extended, the chance of it going through is very slim," said Li Wenbing, analyst at BOCom International.
The China Insurance Regulatory Commission has done a preliminary review of the application, it said in an e-mailed statement yesterday. It didn't give any details about the information requested.
The sale to Thai billionaire Dhanin Chearavanont's Charoen Pokphand Group is facing speculation that regulators may reject the deal, Mancy Sun and Ning Ma, analysts at Goldman Sachs Group, wrote in a note. China Development Bank, which agreed to fund part of the purchase, canceled its loans because of problems with the rest of the financing, Caixin Online has reported.
"The regulator's statement should have a positive impact on Ping An shares, as it reads like the deal can still possibly go through," said Qiu Peng, a Shanghai-based investment manager at Western Securities Co.
Shares in Ping An fell 1.4 percent to HK$67.80 (US$8.75) in Hong Kong yesterday, after gaining 1.3 percent. HSBC gained 0.6 percent, the same as the Hang Seng Index.
HSBC said on December 5 it agreed to sell its 15.6 percent holding in Ping An to four subsidiaries of CP Group in two phases. The first stage, comprising shares valued at about HK$15 billion, was set for December 7. The sale of the remaining shares requires approval from CIRC by February 1, or an extension of the accord.
"If the deal can't get CIRC approval by then or if the deadline is extended, the chance of it going through is very slim," said Li Wenbing, analyst at BOCom International.
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