Anbang Property & Casualty Insurance Co. Ltd.. agreed to transfer part of its stake in China Merchants Bank Co. Ltd. to affiliate Hexie Health Insurance Co. Ltd.
Anbang Property & Casualty will transfer 1,258,949,171 A shares of the bank, or a 4.99% stake, to Hexie Health Insurance. After the transfer, Anbang Property & Casualty will hold 1,445,647,045 A shares and 229,498,500 H shares of the bank, or a 6.64% stake.
A shares, also know as domestic shares, are denominated in Chinese currency and are traded in traded on mainland stock exchanges. H shares refer to the shares of companies incorporated in mainland China that are traded on the Hong Kong stock exchange.
Anbang Property & Casualty and Hexie Health are both units of Anbang Insurance Group Co. Ltd. There had been market speculation in November 2017 that Anbang Insurance Group had been asked by regulators to cut its stake in China Merchants Bank. The bank later said in February that the insurer had no plans to reduce its stake in the bank.