Related: Chinese Shares Drop for 2nd Day on Ping An Fundraising Rumor
A spokesman for the Ping An Insurance (Group) Co., China's second largest insurer, said he did not know about any plan for the company to raise funds, after a rumor caused a 4.14 percent slump in the insurer's share price in Shanghai Thursday.
Ping An spokesman Sheng Ruisheng told Xinhua he "has not heard of the fundraising plan," adding that the company's fundamentals are sound.
Shares of Ping An fell to 52.59 yuan (7.94 U.S. dollars), in its biggest percentage drop in almost two months, amid speculation the company needs to raise 30 to 40 billion yuan.
Shao Ziqin, an analyst with Guosen Securities, said if Ping An needs to raise funds, it will probably happen in the second half of the year after Ping An Bank completes its merger with Shenzhen Development Bank.
He expects Ping An's capital shortfall for 2013 to be about 20 billion yuan.
