Steep Descent Expected for China's Biggest Property Insurer

  • PICC’s mainland-traded shares need to fall 50%: China Vision
  • Shanghai-listed stock more than doubled in 10 trading days
Photographer: Qilai Shen/Bloomberg
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Shares in China’s largest property insurer have started their descent back to Earth and according to analysts, it could be a prolonged and rocky journey.

People’s Insurance Co. (Group) of China Ltd.’s mainland-traded stock rocketed more than 100 percent over 10 trading days starting Feb. 22. The steep rise prompted a rare sell recommendation from Citic Securities Co, the nation’s largest brokerage. The downgrade triggered a sell-off in the A-share market Friday as traders took it as a sign that the government wants to slow down the rally of the Chinese stock market.