Alibaba, Tencent said to invest in Ping An

Ping An Insurance Group outperformed benchmark stock indexes in Hong Kong and Shanghai yesterday on speculation that e-commerce titan Alibaba and Internet giant Tencent would buy shares from the group's US$4.75 billion private placement.

The insurer said on Sunday evening that it will issue 594.056 million new shares in Hong Kong at HK$62 (US$8) per share to between six and 10 investors, according to a filing to the Hong Kong stock exchange.

Ping An's placing price announced on Sunday was 4.7 percent discount to Friday's closing price of HK$65.05.

It will be the largest-ever private placement on the Hong Kong stock market.

Investors from Hong Kong said Alibaba's Jack Ma and Tencent's Pony Ma are among cornerstone investors. Ping An did not deny the news.

"We welcome new investors from all fields, and we do not have further comments," Ping An said in a note to media.

If confirmed, it will be the third time the three giants in their respective fields are working together.

Ping An's shares yesterday rose 2.3 percent in Shanghai to 50.75 yuan (US$8.25) and dipped 0.3 percent to HK$64.85 in Hong Kong. The Shanghai Composite Index shed 0.1 percent and Hong Kong's Hang Seng Index fell 2.6 percent.

Proceeds from the share sale will be used to fund business development and replenish equity and working capital, Ping An said in the filing.

The new shares account for about 7.5 percent of the insurer's total existing share capital, according to the filing.