Wolf Money(Ping An Insurance, HKEx: 2318)

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Ping An Insurance(HKEx: 2318)



The current valuation of Chinese companies under a normal economic cycle is low. Is this a normal economic cycle? The low price had perk the interest of Lone Wolf. I had put in a token sum into HKEx listed Ping An Insurance. I have no idea whether the price I got in was a good price. It does look cheap on paper like many other Chinese stocks. The financial matrix looks ok to me. The stock is trading at 0.55x p/b about 5x p/e with a high historical dividend of 9% and ROE. A corrective stock market is negative for them, given insurer within their normal course of business is expose to the volatility of the stock market. I am expecting a very difficult year for the company given the slump in the stock market. The small purchase adds another sector to my portfolio. A small nibble to get a feel of what is going on in the Chinese equity market, no serious money is involved. More commentary in the month end portfolio review.


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All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.


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