Jake's View | Mainland stock listings are taking Hong Kong rules for granted
ZhongAn Online’s news of a huge boom in car insurance revenues is clearly something that could affect the stock’s share price. But on the Hong Kong exchange’s announcement board there was nothing about this. Company officials, however, were quite willing to tell one of our reporters
ZhongAn Online P&C Insurance has seen explosive growth in car insurance premiums, with revenue from the segment last month alone reaching 70 per cent of the amount it made for the whole of last year.
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Some of these China listings just take us for granted without even a nod to our regulations or the rules of our stock exchange.
ZhongAn Online’s news of a huge boom in car insurance revenues, for instance, is clearly something that could affect the stock’s share price. Car insurance is still only a minor part of the company’s business but growth of this kind heralds a big new underpinning of earnings.
Under the guidelines published by the Securities and Futures Commission, this constitutes inside information and ZhongAn was obligated to inform the entire market of it as soon as practicable.
The guidelines say it should be done through an announcement to the stock exchange, which is then published by the exchange. Other forms of announcement are permitted but the one through the stock exchange is required.
ZhongAn makes 70pc of 2017 car insurance premiums in one month
