New capital operation strategy of listed insurance companies: issuing bonds overseas and simultaneously cancelling and repurchasing shares.

Listed insurance companies are constantly stepping up their efforts to issue bonds overseas for financing. According to China Taiping, the company's H-share convertible bonds were issued at a premium with zero-coupon interest, raising a total of HK$15.556 billion. This year, China Ping An also issued H-share convertible bonds, also at zero interest. However, while China Ping An was issuing H-share convertible bonds, they were also cancelling and repurchasing their A-share stocks. The former action increased the total share capital after conversion, while the latter action decreased the total share capital. The simultaneous issuance of zero-coupon convertible bonds overseas by listed insurance companies and the cancellation and repurchase of shares is a balanced and rational capital operation: from the perspective of bonds, insurance companies can supplement their capital through low-cost overseas financing to support long-term strategic areas such as medical care and technology; from the perspective of stocks, the conversion of overseas convertible bonds can improve the liquidity of insurance companies' H-shares, while repurchasing and cancelling A-share stocks can raise the A-share price and increase earnings per share.