Shares of Ping An Insurance (Group) Co are expected to drop if shareholders approve a secondary offering plan tomorrow, which, according to analysts, is very likely.

Shenzhen-based Ping An will hold a shareholders meeting tomorrow to vote on its plan to sell up to 1.2 billion new yuan-backed A shares, or 14 percent of its expanded capital, plus 41.2 billion yuan of six-year convertible bonds with detachable warrants.

Ping An needs approval from at least two-thirds of its shareholders to carry out the plan. Ping An has a total of 4.79 billion yuan-backed A shares. The board, which represents 2.32 billion shares, already said they approved the plan, leaving the senior managers looking to gain support from at least another 870 million shares.

Among the 870 million shares, owners of the 300 million floating shares and strategic investors, holders of at least one million shares, may accept the plan, Wang Xiaogang, an Orient Securities Co analyst, said.

Ping An's senior managers will have to gain support from investors holding the remaining 470 million shares.

"There is uncertainty whether the plan can be approved and we see a 60 percent possibility for the plan to be approved,'' said Wang. "If the plan is approved, the share price will drop due to the big supply. If the plan is denied, its shares may rise significantly."