Ping An may also initiate share buybacks for its Hong Kong shares
Mar 14, 2019 (China Knowledge) - Ping An Insurance has said that it may extend its share buy-back to include its Hong Kong equity. However, the company did not provide a timeline or specific figure for the buy-back.
In a stock exchange filing earlier this week, the company announced that it plans to spend up to RMB 10 billion to buy-back its Shanghai traded A-shares over the next 12 months as it considers its A-shares to be undervalued.
The repurchase price will not be higher than RMB 101.24 per share.
Ping An said that it decided to repurchase its Shanghai-listed shares as the mainland market is more volatile and the regulations regarding share buy-backs are more relaxed, following a relaxation last year which allowed companies to use share buy-back programs as staff incentives.
Ping An which is China’s second largest insurer in terms of premiums reported a net profit of RMB 107.4 billion in 2018, increasing by 20.6% from the previous year.
The buy-back will commence once approval is gained from the company’s shareholders during their annual general meeting in April. Ping An has also pledged to continue buy-backs in the future to bring benefits to its investors while also supporting Chinese regulators and the country’s share buy-back policies.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: firstname.lastname@example.org
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI