China’s largest insurer says it is insulated from the troubles in the country’s property sector after taking steps to cut its exposure to developers in recent years.
The Chinese insurance giant is adding alternative investments in real assets to enhance portfolio resilience. It is optimistic about China’s $12.5 billion public REITs market, where it is both asset owner and investor.
At least 10 have missed the deadline to announce their annual results, and EY and PwC have resigned as auditors for several large developers, raising eyebrows among investors.
A recent survey from AsianInvestor’s Asset Owner Insights showed that China is among the top five destinations for Asian asset owners’ alternative investments in the next six to 12 months.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
The $95 billion Korean savings will set up a separately managed account for real estate debt investment early next year in order to shorten decision-making and help it win deals in a crowded market.
Ping An Insurance’s net investment return slipped 0.3% to 3.8% in the first half, while another Chinese insurance giant China Life’s return was up 0.04% to 4.33% in the same period.