Ping an Insurance coverage Faces $8 Billion Exposure in Indebted China Fortune Land | Investing News

BEIJING (Reuters) – Ping An Insurance Group Co of China <601318.SS> claimed it has a total publicity of 54 billion yuan ($8.4 billion) in China Fortune Land Enhancement Co as the indebted assets developer faces mounting default force.

Ping An Co-CEO Xie Yonglin explained to an earnings meeting on Thursday that the business was now top a creditor committee managing the money owed in China Fortune Land, in which the corporation has a 25% stake.

Around the years, China’s biggest insurer has invested some 18 billion yuan in the equities of China Fortune Land Progress and 36 billion yuan in its money owed, said Xie. All those investments are component of Ping An’s 8-trillion-yuan investment portfolio, he extra.

Chinese authorities have due to the fact 2016 sought to restrict lending to the more than-leveraged house sector to reduce systemic challenges. Regulators outlined borrowing caps identified as “the 3 purple lines” very last August while the central lender in December also released caps on home financial loans granted by banking companies.

China Fortune Land’s operations are experiencing some troubles together with a limited regulatory environment which is influencing payment selection, the fallout from the COVID-19 pandemic and the firm’s intense growth, mentioned Xie.

The company explained in a statement on Monday it had skipped payment of principal and interest totalling $813 million.

(Reporting by Zhang Yan,Kevin Huang and Ryan Woo Enhancing by Jacqueline Wong and Ana Nicolaci da Costa)

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