Ping An shareholders may block stock sale

A proposed US$19 billion share sale by Ping An Insurance may be voted down by shareholders, the South China Morning Post reported. The company’s management has said the proceeds of the share placement, which would be the largest ever seen on the mainland, would be used to fund M&A activity. However, some fund managers said they didn’t see the need to raise so much money and indicated they would vote against the deal. They claimed the proposed move had taken them by surprise, as Ping An had failed to communicate with H-share investors. The company also remains silent on rumors tying it to bids for UK insurance firms Prudential and Aviva. Sources said Louis Cheung, group president and executive director, was in England to negotiate a deal.