Bullish Bets on China Life Surge as Profit May Reach Record
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Bullish bets on China Life Insurance Co. surged to an all-time high on optimism government support for the world’s fastest-growing insurance industry will drive profit to a record this year.
Calls that pay should China Life gain 10 percent cost 6.4 points more than equivalent bearish bets on Friday, three-month options data show. The gap climbed to 7.4 points on May 4, the widest in Bloomberg data dating back to February 2010. China Life reported last month that quarterly profit jumped 70 percent from a year earlier, boosted by growth in the value of new insurance policies and higher investment income amid the mainland’s world-beating equity rally.