Ping An loses 15.7 bn Rmb on Fortis shares

March 20, annual results
by Getty Images via DaylifeThe Ping An management and China's regulators probably thought the Chinese insurance company made a very prudent investment when it bought 5 percent of the Belgium-Dutch insurer. Not only was it a solid company, it would offer great perspectives for the future.
It is not the first Chinese global deal that goes sour, but this one never expected. Ping An announced on Sunday it had made reservation of 15.7 billion Renminbi or 1.6 billion euro to write off the loses in Fortis, reports Reuters.

The loss would be one of the largest suffered by a Chinese financial institution so far in the turmoil gripping global markets. Ping An originally invested a total of 23.9 billion yuan in Fortis.

China's companies did have quite some setbacks in their efforts to follow the policies of the central government for going global. But is now start to look almost like a reversed Midas-touch: anything they start goes wrong.

Commercial
Making sense out of China's global aspirations is a challenge. At the China Speakers Bureau we fortunately have some people who can help you on your road to meet your future Chinese business partner. When you need them as a speaker at one of your events, do let us know.

Related articles by Zemanta

• China's economy, steady as she goes - Arthur Kroeber
• Ping'an drops Fortis deal
• World Business Briefing: China: Insurer Invests in Fortis Unit