PING AN SAYS SOLVENCY UNAFFECTED BY NEW ACCOUNTING RULES

Chinese insurer Ping An will not see its solvency rating affected by new accounting regulations, the company said at the weekend. New rules announced by the China Insurance Regulatory Commission (CIRC) require companies with both mainland China and Hong Kong listings to implement international accounting standards in their financial reports. Companies with only Chinese mainland listings ('A' shares) can continue using Chinese accounting standards. Ping An said that the new requirements impacted three main areas — the separation of mixed insurance contracts, major insurance risk-testing and the way in which reserve requirements for insurance contracts are measured. Ping An will be preparing its 2009 report in accordance with international accounting principles. China has introduced the new requirements as part of its programme to integrate Chinese business with global practice, the Ministry of Finance has said. Meanwhile, Ping An has extended the deadline on a deal to buy out Newbridge Capital's stake in Shenzhen Development Bank. Ping An said at the end of last year that the deal was still awaiting regulatory approval. Ping An said that it now hoped to complete the deal by April 30 2010, although there could be a further 180-day grace period. Ping An said that both parties remained confident that the transaction would be completed. The insurer initially announced in June that it would be buying up to 30% in locally based Shenzhen development Bank, of which 16.76% would be bought from Newbridge Capital, and the rest via a private share placement.