Chinese insurance companies see weak stock market in H2

BEIJING, Aug 27, 2008 (Xinhua via COMTEX) -- LFC | Quote | Chart | News | PowerRating -- Chinese insurance companies saw weak China's A-share market, deeming that the stock market is likely to decline further in the rest of the year.

"There is still possibility for China's A-share market to keep adjusting, fluctuating or evening dropping in short term", Liu Jiade, vice president of China Life noted.

The three A-listed Chinese insurance companies have reported a weak performance in the first half in comparison with the same period of last year.

The net profit of Ping An Insurance (601318.SH) and China Life ( 601628.SH) was down 11.9 percent and 36.16 percent, respectively.

Though the net profit of China Pacific Insurance (601601) obtained a rise of 44 percent year on year thanks to the dividend of close-end funds, it faces big growth pressure in the second half.

Insiders deemed that as China's stock market is still bearish, insurance capital investment strategy would turn prudent.

The above-mentioned three insurance companies pledged to increase investment in fixed-income instruments in the rest of the year.

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