UPDATE 1-China's Ping An sees 2006 net profit up 50 pct yr/yr
(Adds details, background)
SHANGHAI, March 15 (Reuters) - Ping An Insurance (Group) Co. of China Ltd. (2318.HK) (601318.SS) said on Thursday it expected its 2006 net profit would rise more than 50 percent, boosted by strong economic growth and increasing insurance demand in China.
Ping An, the country's second-largest life insurer, made a net profit of 3.34 billion yuan ($432 million) in 2005, it said in a statement.
On Thursday, the Shanghai-listed shares of Ping An were added to China's Shanghai/Shenzhen 300 index .SHSZ300, which tracks 300 of the most important and biggest domestically listed companies.
Analysts said the fact that Ping An was added into the 300 index would boost investor confidence in financial stocks.
Shares in Ping An Insurance (Group) Co. Ltd. jumped as much as 51 percent in their Shanghai debut on March 1.
Ping An chairman Ma Mingzhe has said he believes insurance business has huge potential in China where only 4 percent of its 1.3 billion population has life insurance.
Ping An, about 17 percent owned by HSBC (HSBA.L) (0005.HK), raised 38.9 billion yuan in China's second-biggest domestic IPO last month, selling 15.66 percent of its expanded share capital.
($1=7.74 Yuan)
((Reporting by George Chen and Sophie Taylor, editing by Rachael Barker; george.chen@reuters.com; Reuters Messaging: george.chen.reuters.com@reuters.net; +86 21 6104 1795)) Keywords: PINGAN RESULTS/FORECAST
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