＜Research＞UBS: PING AN CB Issuance Not Complete Surprise; CHINA LIFE Core Solvency Highest Among Sector

　　PING AN (02318.HK) -1.850 (-5.132%) Short selling $678.13M; Ratio 30.437% cratered 5.4% to close at $34.1 at today (16th)'s midday. PING AN announced that it intends to issue US$3.5 billion 0.875% convertible bonds due in 2029, with an initial conversion price of $43.71 per H-share, implying a premium of about 21.25% over yesterday's (15th) closing price of $36.05, which can be fully converted into about 625 million shares, accounting for 7.74% of the Company's enlarged H-shares and 3.32% of its issued share capital.

　　UBS released a research report believing that it is not entirely surprising amid Chinese companies' convertible bond issuance rush this year, given the high interest rates and stock market volatility in the US. Chinese enterprises accelerated the pace of sales of convertible bonds, especially the technology sector.

　　Related NewsG Sachs: PING AN CB Issuance Can Provide Low-cost Financing w/ Limited Potential Dilution Impact

　　PING AN's issuance of convertible bonds should not be a complete surprise to the market, the broker added. Therefore, UBS rated PING AN's H-shares at Buy, with a target price of $56.

　　For other Chinese insurers, Chinese insurers stepped up the issuance of capital supplementary bonds or undated capital bonds under China Risk Oriented Solvency System Phase II, with the issuance scale exceeding RMB23 billion in 1H2014.

　　Among the listed Chinese life insurers, CHINA LIFE (02628.HK) -0.120 (-1.089%) Short selling $73.68M; Ratio 48.782% had the highest core solvency ratio of 155% as of March 2024, followed by PICC GROUP (01339.HK) -0.030 (-1.149%) Short selling $1.90M; Ratio 7.848% 's PICC Life (146%), CHINA TAIPING (00966.HK) -0.160 (-1.930%) Short selling $322.49K; Ratio 2.218% 's China Taiping Life and NCI (01336.HK) -0.400 (-2.618%) Short selling $6.77M; Ratio 18.622% , both at 143%, nearly 3x of the minimum regulatory requirement (50%).

　　Related NewsCICC Cuts TP of PING AN (02318.HK) to $55.65, Keeps Outperform Rating

　　CPIC (02601.HK) +0.360 (+1.854%) Short selling $28.39M; Ratio 18.851% 's CPIC Life had a core solvency ratio of 108%, but it has issued a RMB8 billion perpetual bonds in 2Q24.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-16 12:25.)

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