Home Views Banking & finance

Ping An’s US$90 bil slump grounds one-time China high flyer

Bloomberg10/13/2021 9:0 AM GMT+08  • 4 min read
Ping An’s US$90 bil slump grounds one-time China high flyer
Ping An's share price decline takes it price earnings ratio to 6 following investments in China's indebted property stocks
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

China’s Ping An Insurance (Group) Co. has long argued it should be treated like a high-growth technology company instead of a seller of life policies. After a US$90 billion plunge in its market value, it’s now priced more like a property developer at a time when the country’s real estate sector is out of favour.

This year’s 40% stock dive has cut its price-to-earnings ratio to just above 6, slightly more than the Shanghai Stock Exchange Property Index’s multiple of 5.7 and a far cry from the 20-plus commanded by insurance peers Berkshire Hathaway Inc. and AIA Group Ltd. That’s been fueled by a botched real estate investment, Beijing’s technology crackdown that hit the value of its spinoffs and a slumping life business.

While it’s turning to technology to bolster the productivity of top salespeople, and getting rid of poor performers, it also has to contend with China’s shifting job landscape. The average monthly income for a Ping An agent fell 8% to 5,793 yuan ($897) last year. That can make it less financially appealing than delivering food at Meituan.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.