Ping An sets mega sale price

Ping An Insurance (Group) Co, the country's second largest insurer, yesterday announced pricing details of its plan to sell 1.2 billion A shares and 41.2 billion yuan of convertible bonds, the largest equity refinancing bid in China's capital market.

The issue of up to 1.2 billion A shares, or 14 percent of its expanded capital, will be priced at no less than the stock's average market price over the 20 trading days before the offer is released, or no less than the average price on the previous day, the company said in the statement.

Ping An's A shares shed 10 percent yesterday, closing at 88.39 yuan on concerns the huge refinancing plan could suck up market liquidity. It also played a part in driving down the Shanghai Composite Index 5.14 percent yesterday.