Chinese Insurance Companies Listed Within Risk Research

With People's Insurance Company of China, China Life InsuranceCompany and Ping An Insurance Company listed overseas, a lot ofChinese insurance companies begin to accelerate their listing paces oneafter another. The statistics show that, so far, the number of insurancecompanies that have been coached has reached 6. Many experts proposedtheir worry about the upsurge of insurance companies' listing. Theybelieved that listing is not a game and the insurance companies will haveto face up with the risks and difficulties after listing. But after Chinese insurance industry opens in an all-round way,Chinese insurance companies are facing the pressure of competition frominternational insurance giants. So, it is necessary that Chinese insurancecompanies become big and powerful through entering the capital market.But after the three insurance companies were listed overseas, all factorsmade their stock prices up and down. This unprecedented shock waveinfluences not only investors' confidence, but also the whole Chineseinsurance industry. The obvious fact is, though the reputation of " firstinsurance share of domestic market " is great, the listing of insurancecompany affects the stakeholders such as the investor, the insured, thebeneficiary, etc. The complexity of insurance companies' being listed andcurrent situation of the domestic stock market require us to analyzeobjectively the risks that Chinese insurance companies will face afterlisting. There are four chapters in this dissertation: As the foundation of this dissertation, Chapter One discusses thereasons and characters of Chinese insurance companies' being listeddomestically. The reason why Chinese insurance companies choose to belisted domestically is, not only to raise capital and solvency, but also tosolve the problems of the insurance companies' management. Thoughthere is no insurance share exchanged in domestic security market atpresent, we can see the listing domestically of Chinese insurancecompanies has distinct characteristics. There are two ways to be listed indomestic stock market. Before the whole circulation, the capital structureof Chinese listed insurance companies has its own characters. In Chapter Two, the dissertation discusses the relativelyuncontrollable risks. Firstly, it analyzes the systemic risk. Once Chineseinsurance companies are listed domestically, they will place themselves inChinese stock market and face the high systemic risk of the domesticstock market. " Policy market " which causes the high systemic risk ofdomestic stock market is a typical character of China's stock market. Andit makes it difficult to stabilize its stock price by the performance of thelisted insurance company. Secondly, it analyzes the risk of merger &acquisition by foreign companies. Through listing domestically, theshares of Chinese insurance companies will be scattered and threedifferent capital structures appear finally. Then the dissertation discussesthe risk of merger & acquisition by foreign companies under the threecapital structures one by one. If the company is acquired successfully byforeign capital, the management stability of the listed insurance companywill be influenced. Finally, the information disclosure risk also can't beignored. This dissertation lays emphasis on studying the continuousinformation disclosure of listed insurance companies, and discusses theobjectives and contents of information disclosure in detail. If the listedinsurance company discloses information inappropriately, it will make thelisted insurance company be punished because of false informationdisclosure, or reveal business secret because of the disclosure ofinformation in detail. In Chapter Three, the dissertation discusses the relativelycontrollable risks. Firstly, it analyzes the investment risk of the fund thatis raised from the stock market. This risk is mainly reflected in twoaspects: the listed insurance company has not used the fund according tothe prospectus lists, and the specific investment risks. Both the tworespects will produce the adverse effect on t...