Ping An Insurance (Group) Co. of China Ltd. is looking to diversify its investments by investing in Japanese companies and real estate through private equity funds, in a bid to get higher returns and manage currency risks, Bloomberg News reported March 27.
The group plans to invest US$100 million a year via private equity firms and is aiming to get an annual return of 20% by investing in companies with market capitalization value ranging from ¥5 billion to more than ¥50 billion.
Separately, the group is also planning to invest US$80.1 million in Ascot Corp., a Tokyo-based real estate firm, to increase its stake to 73%. The Chinese company plans to use Ascot as a platform to invest in real estate to get stable returns.
Ping An Insurance is making efforts to increase returns and manage currency risks by seeking overseas investments, as the yuan has plunged against the dollar, even as Chinese regulators are clamping down on foreign acquisitions.
As of March 24, US$1 was equivalent to ¥111.04.