Ping An Securities

Backed by an insurance giant

Ping An Securities is the securities arm of Ping An Group, China's second-largest insurer.  Located in Shenzhen in Guangdong Province in southern China, the firm began operations in 1991 as a securities department within its parent company.  Ping An Securities was formally established as a subsidiary in October 1995 with approval from People's Bank of China.  With the backing of its well-known parent, in 2007, Ping An Group was named one of the Top Ten Brands Most Favored by Chinese Internet Users, Ping An Securities has grown over the years from a regional securities house into an integrated nationwide company.

Ping An Securities handles a variety of financial services through five main divisions: investment banking, fixed earnings, asset management, research and derivative products.  The firm had reason to sulk at the end of 2008 when it posted almost a 100-percent drop in income for the year.  Hurdled by severe natural disasters and stock market fluctuations, Ping An reported a net profit of $127.82 million in 2008, a 94.4 percent drop from its 2007 net profit.

Innovation is the name of the game

In 2004, Ping An acted as lead underwriter on four initial public offerings (IPOs) in the primary market, earning a top ranking that year for equity offerings.  The following year, the firm pushed forward reforms on nontradable shares for domestically listed companies.  Of all the listed companies that have announced share reforms, Ping An Securities successfully sponsored 20, ranking as one of the top five securities firms in China.  Among members of the Shenzhen Small and Medium Enterprises Board, Ping An Securities ranked second among all securities firms in China in 2005.

Ping An Securities was a pioneer in helping to develop a next-generation trading system for the Shanghai Stock Exchange.  The firm played a crucial role, setting up a risk-supervision project and proposing the route for developing derivative products domestically.  For this, the firm was named Annual Financial Innovator in 2005 by the Securities Association of China and Capital Circle magazine.  These organizations also named Ping An the Most Influential Corporate Brand and Best Investment Banking Team for that year.

Buying stakes and joint ventures

Ping An Group was poised in March 2007 to become China's first insurer to own a mutual fund company, as Ping An Securities had reached the final stages of buying a controlling stake (35 percent) in Jutian Fund Management, one of the country's oldest stockbrokers.  However, by October 2007, U.S. investment bank Morgan Stanley swooped in and scooped up Jutian for US$8.6 million.  In January 2008, Ping An Securities planned a joint-venture fund management company with United Overseas Bank (UOB) Asset Management, Singapore's largest asset manager.  Under this, Ping An would get a 75-percent stake of the firm with the remaining 25 percent to be owned by UOB.  The proposed joint-venture firm has hired Li Kenan from rival company First State Cinda Fund Management in July 2008 to be its CEO.  In 2009, Ping An Securities goes for another venture with its plan to create a U.S. dollar denominated private-equity fund for its future investments.



Ping An Securities


1st Floor, Ping An Building
Bagua 3rd Road, Futian District
Shenzhen 518029
Phone: +86-755-8242-2251
www.pa18.com

STATS


  • Employer Type: Public
  • Chairman & CEO: Ye Licheng

Key Financials

  • 2008 Income: $550 million
  • 2008 Revenue: $1,471 million

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