Gree gets boost from in­surer’s buy

China Daily (USA) - - BUSINESS - By CAI XIAO caix­iao@chi­nadaily.com.cn

Gree Elec­tric Ap­pli­ances Inc of Zhuhai saw its shares surge 7.5 per­cent on Thurs­day on the news that Fore­sea Life In­sur­ance, a unit of Chi­nese fi­nan­cial con­glom­er­ate Bao­neng Group, had in­creased its stake in the com­pany.

Ex­perts said in­sur­ers’ ac­tive par­tic­i­pa­tion in the stock mar­ket will con­tinue next year be­cause of their strong fi­nan­cial strength and con­fi­dence in high-qual­ity listed com­pa­nies.

Gree’s shares closed at 30.6 yuan ($4.44) in Shen­zhen on Thurs­day af­ter the com­pany said in a reg­u­la­tory fil­ing on Wed­nes­day that Fore­sea Life had be­come its third-largest share­holder.

Fore­sea Life largely pur­chased shares of Gree be­tween Nov 17 and Nov 28, and its hold­ing in­creased to 4.1 per­cent from 1 per­cent, the state­ment said.

Hao Yansu, di­rec­tor of the School of In­sur­ance at the Cen­tral Univer­sity of Fi­nance and Eco­nomics, said in­sur­ers such as Fore­sea Life have ad­e­quate cap­i­tal.

“I think in­sur­ers’ ac­tive par­tic­i­pa­tion in the Chi­nese stock mar­ket at this mo­ment is good for them­selves and listed com­pa­nies, and it is also sig­nif­i­cant for boost­ing the stock mar­ket,” saidHao.

Hao said in­sur­ers’ par­tic­i­pa­tion in the stock mar­ket will con­tinue next year be­cause of their grow­ing busi­ness and en­cour­ag­ing poli­cies.

In the Jan­uary-Septem­ber pe­riod, pre­mi­ums of Chi­nese in­sur­ers reached 2.5 tril­lion yuan, up 32.2 per­cent year-onyear.

China In­ter­na­tional Cap­i­tal Cor­po­ra­tion said in a re­port onMon­day that it was a “high prob­a­bil­ity” that Fore­sea Life would in­crease its stake in Gree to more than 5 per­cent, based on dis­persed own­er­ship, a low price-earn­ings val­u­a­tion and a steady cash flow.

Gree’s top two share­hold­ers are Zhuhai Gree Group Co Ltd and He­bei Jing­hai Guar­an­teed In­vest­ment Co Ltd, ac­cord­ing to data from iFinD, a do­mes­tic fi­nan­cial in­for­ma­tion ser­vice com­pany.

Dong Mingzhu, one of China’s most prom­i­nent busi­ness­women, was re­moved from the post of chair­woman of the State-owned con­glom­er­ate Gree Group on Nov 11, but stays on as the head of its listed elec­tron­ics arm.

XU YONG / FOR CHINA DAILY

Work­ers at an air con­di­tioner assem­bly plant of Gree Elec­tric Ap­pli­ances Inc in He­fei, An­hui prov­ince.

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