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China will regulate online insurance sector
05 Sep 2021 (432 views)

I own 100,000 shares of PICC Property & Casualty (2388.HK). My average cost is $6.19 and the current market price is $7.11 (HKD). My investment now shows a gain of 14.8%.

It has a price earning ratio of 5.83 times and a dividend yield of 6.39%. These are strong fundamentals. It is the oldest and largest non-life insurance company in China. 

Recently, I read a news in a financial website that China intends to regulate the practices of insurance companies. I thought that this might be negative for the insurance companies. 

I found this article on this development. On closer reading, I found that the regulation will involve the sale of online insurance policies. 

I expect that PICC, with its long history, is likely to have more of its sales produced from traditional channels, rather than online channels. 

The new regulation is likely to impact the newer competitors that sells mainly through online channels. This development might benefit PICC.

I have decided to hold on to my holdings in PICC

Tan Kin Lian

Note - I am sharing my view on my investment in PICC. I am not giving investment advice whether to buy or sell this stock at its current price.

 


China will regulate online insurance sector
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I own 100,000 shares of PICC Property & Casualty (2388.HK). My average cost is $6.19 and the current market price is $7.11 (HKD). My investment now shows a gain of 14.8%.

It has a price earning ratio of 5.83 times and a dividend yield of 6.39%. These are strong fundamentals. It is the oldest and largest non-life insurance company in China. 

Recently, I read a news in a financial website that China intends to regulate the practices of insurance companies. I thought that this might be negative for the insurance companies. 

I found this article on this development. On closer reading, I found that the regulation will involve the sale of online insurance policies. 

I expect that PICC, with its long history, is likely to have more of its sales produced from traditional channels, rather than online channels. 

The new regulation is likely to impact the newer competitors that sells mainly through online channels. This development might benefit PICC.

I have decided to hold on to my holdings in PICC

Tan Kin Lian

Note - I am sharing my view on my investment in PICC. I am not giving investment advice whether to buy or sell this stock at its current price.