HSBC Global Research said in a note today that "shareholders will likely approve Ping An's share and bond issues.''

However, investors will be looking for management to set out a convincing strategy for use of the proceeds, the note said.

Even if its shareholders support the plan tomorrow, Ping An has to gain regulatory approval for the funding plan.

"We believe it is highly likely that the offering will be delayed to the second half at least,'' said Dorris Chen, a BNP Paribas analyst. "There is little possibility of an immediate offering in March.''

The whole plan can help the country's second-biggest insurer chalk up about 120 billion yuan based on the currency market prices. The scale already shrank by almost a third due to evaporating market value.

(Shanghai Daily March 4, 2008)