Influenced by the news, Xinhua Life Insurance Co., Ltd. (hereinafter referred to as “Xinhua Insurance”, 601336.SH) fell at the opening
of the market, with a decline of 8% for a time. Later, it recovered slightly. Up to the date of publication, the decline still exceeded 7%, reaching 7.76%.
Meanwhile, Hong Kong shares of Xinhua Insurance Port (HK. 1336) fell 8.55% at one time, and now the decline has shrunk to 6.9%.
The news of management change has attracted market attention. Analysts: Uncertainty
On the face of the market, the decline of Xinhua Insurance was more than 8%. Influenced by the trend of Xinhua Insurance, the whole insurance sector dragged down, with the insurance theme sector falling by 1.47%.
However, the other four listed A-share insurance companies performed better than Xinhua Insurance. As of publication, China Life rose slightly by 0.29%, Ping An rose slightly by 0.21%, Taibao fell by 1.52%, and China Insurance fell by 1.77%.
Weekend news may be one of the factors for the sharp drop in Xinhua Insurance’s opening on Monday. According to the Economic Observer, Wanfeng will resign
from Xinhua Insurance and stop at Xinguang Haihang Life, which has just completed the shareholder change and
capital increase. It is understood that in October 2014, Wanfeng took the post of Chief Operating Officer (President) of
Xinhua Insurance Company. From August 2003 to August 2014, Wanfeng served as President and Vice Chairman of China Life Insurance Company.
For potential personnel changes, some non-bank financial analysts of securities firms said that management changes may constitute a major factor affecting the
company’s fundamentals. “New personnel arrangements, short-term personnel turbulence, future strategic direction, may bring uncertainty to the company.”
In fact, since 2018, Xinhua Insurance has been in a downward trend of concussion. Its opening price in 2018 is 70.38 yuan. So far, the range has fallen by more than 40%.
On December 26, 2018, at the opening day of Xinhua Insurance, Wanfeng said that in order to pursue more stable development, he planned to revise the
previous five-year development plan, with stable operation as the main theme, and would submit a new adjustment plan as soon as possible.