China Taiping Insurance Shares Plunge Amid Hong Kong Fire Crisis

China Taiping Insurance's shares fell due to its exposure to a Hong Kong apartment complex fire, which caused significant casualties and liabilities. The incident raised concerns on the insurer’s underwriting results and involved a renovation project by Prestige Construction. The authorities are investigating the cause as potentially negligent construction practices.

Shares of China Taiping Insurance Holdings dropped sharply, by as much as 8%, following a fire at a Hong Kong apartment complex. The blaze resulted in at least 55 fatalities, with 300 individuals still missing, leading to concerns over Taiping's potential financial exposure exceeding $200 million.

The Wang Fuk Court in Tai Po, a densely populated area facing housing shortages, was insured by China Taiping. The company's shares ended Thursday down 1.92%, trailing the Hang Seng Index's modest rise. Continued insurance coverage for the complex has been approved until 2026, with liability potentially reaching HK$2 billion.

Despite attempts, China Taiping and the project's contractor, Prestige Construction, have not commented on the issue. Analysts warn the fire could severely impact Hong Kong's general insurance market. Hong Kong's insurance regulator is coordinating a task force to address inquiries and claims post-disaster.

(With inputs from agencies.)