What an impressive write-up. Thank you very much for all the work.
I'm really worried about the mismatching between assets and liability durations. I consider it a very big red flag, but it's a very interesting case to follow from time to time.
Yes the asset-liability mismatch is a feature of Chinese life insurance companies unfortunately. Perhaps one day there'll be enough long-maturity assets for them to achieve proper immunisation of cash flows.
Ping An looks inexpensive and may be worth a bet the political aspects make it difficult to judge.
If blood was on the streets on banking and insurance. And a contagion was to take hold. What are your views on the sectors that one should concentrate on ?
What an impressive write-up. Thank you very much for all the work.
I'm really worried about the mismatching between assets and liability durations. I consider it a very big red flag, but it's a very interesting case to follow from time to time.
Joaquin
Thank you Joaquin!
Yes the asset-liability mismatch is a feature of Chinese life insurance companies unfortunately. Perhaps one day there'll be enough long-maturity assets for them to achieve proper immunisation of cash flows.
Ping An looks inexpensive and may be worth a bet the political aspects make it difficult to judge.
If blood was on the streets on banking and insurance. And a contagion was to take hold. What are your views on the sectors that one should concentrate on ?