Ping An Insurance (SHA:601318, HKG:2318) and other Chinese insurers are doubling down on Hong Kong-listed bank stocks, drawn by attractive dividend yields and low volatility, Bloomberg News reported Wednesday.
The insurer has invested HK$180 billion since late 2024, raising stakes to up to 18% in Industrial and Commercial Bank of China (SHA:601398, HKG:1398) and at least 15% in China Merchants Bank (SHA:600036, HKG:3968) and Agricultural Bank of China (SHA:601288, HKG:1288), according to the report.
With average dividend yields over 4%, exceeding China's 10-year bond yield of 1.65%, insurers see banks as stable, state-backed investments, Bloomberg wrote. The buying spree has lifted Hong Kong's bank index to a seven-year high.
Shares of Ping An Insurance rose 1% on the Shanghai and Hong Kong bourses.
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