CHINESE INSURERS FALL BY 10% LIMIT AS SHANGHAI INDEX PLUNGES

Several Chinese insurers saw the value of their companies fall by the maximum 10% yesterday as the Shanghai Composite Index fell 7.19% to a six-month low. China Life stock ended the day at 41.04 yuan — its lowest price for seven months. Ping An fell 10% to 72.53 yuan, while China Pacific fell 10% to 35.83 yuan. The China Insurance Regulatory Commission (CIRC) warned last week that insurers suffered a double impact from falling stock prices — it reduced their options for raising funds, and could risk large number of policyholder redemptions, which would impact liquidity. China Life, for example, earned more from investment returns last year than for the previous five years combined.