Ping An profits fall 44% on aquisition of Shenzhen Development Bank

Ping An Insurance (2318.HKG) profits fell 44% in the third quarter due to a one-off expenditure to acquire Shenzhen Development Bank in July, Reuters reported. Profits fell to RMB1.76 million (US$276 million) down from RMB3.5 billion (US$494 billion) in the third quarter 2010. A 15% drop in the stock market during the third quarter also negatively impacted profits by hurting investment returns, Ping An said in a statement. Stripping out the acquisition’s impacts, Ping An profits rose 29% in the first nine months of the year. Ping An’s share price has fallen 38% so far this year, outpacing the 17% drop in the Hang Seng Index. The gloomy market outlook could negatively impact rival China Life’s US$4 billion IPO planned in Hong Kong and Shanghai later this year.