Ping An-backed Lufax drops as Xi leadership team causes stir

Lufax Holding

24/10/2022 11:34

** Shares of Shanghai-based financial services co Lufax
Holding Ltd  LU.N  drop 10% to $1.51 in premarket trade, along
with other U.S.-listed shares of Chinese companies
    ** If losses hold, stock would open at a record low
    ** China President Xi Jinping secured a third term on Sunday
and stacked the new Politburo Standing Committee with allies,
which sparked concerns that political ideology would take
priority over economic growth  urn:newsml:reuters.com:*:nL1N31P0A7
    ** Xi has overseen a major crackdown on the country's
technology giants, which has also targeted companies listed
overseas
    ** LU, a unit of China's biggest insurer, Ping An Insurance
Group Co of China Ltd  601318.SS , has been seeking a listing in
Hong Kong as it looks to ease Chinese regulators' worries
    ** Both LU and Ping An have not been probed by China yet,
but the government's crackdown on the indebted property market
hurt Ping An's investments in the sector, weighing on its 2021
profit
    ** As of last close, LU had lost 70% this year
 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com;))