Writing.Liu Yuqing, Lu Junsheng
How much the net worth of Nanshan Life Insurance may have decreased in the second quarter, and the whispers that may drag down Runtaixin and Runtaiquan are flying all over the sky. In fact, after carefully reviewing Nanshan’s financial affairs, it shows that although this Runtai storm is blowing fiercely, it should be surprising. Safe pass.
“The most important thing for Nanshan Life to operate well.” When the net worth of its two subsidiaries, Ruentex Innovation and Ruentex Global, was affected by Nanshan Life’s second-quarter earnings report, and was even accused of facing a delisting crisis, Group President Yin Yanliang faced the crisis. Storm, but the old god is telling “Today Weekly” that Nanshan Life will continue to operate well and ensure the rights and interests of each policyholder. The most important thing.
The cause of this storm is that, through their holdings in the related company Runcheng, Runtaiquan and Runtaixin hold 26.62% and 25.11% of Nanshan Life Insurance respectively. The net worth of Nanshan Life may evaporate by about 200 billion yuan. This heavy blow has dragged down the two major shareholders of Runtaiquan and Runtaixin, and their net worth may also be seriously affected, and may even be on the verge of becoming a negative number.
According to the “Securities Exchange Act”, once a company’s net worth reaches zero, it must be delisted. For Runtai Group, the two listed companies were hit hard by not being aware of it in advance and making preparations in advance. This incident is not only an operational difficulty, but also a shame.
A solution to the Nanshan storm can be seen from the financial report
The fire started from Nanshan Life Insurance, but it exploded in the periphery of Runtaiquan and Runtaixin. The stock price stopped falling after killing two long black sticks in a row on July 20 and 21; but Nanshan Life Insurance, who was at the source of the fire , its 4 million policyholders are more worried: “Will my policy be affected?”
The answer is actually no. Why not? The Financial Supervisory Commission took the lead to explain, saying that “the rise in interest rates has positive benefits for the life insurance industry, because it will improve the long-term problem of interest spread losses.” Since policyholders are not affected, why does it affect Ruentex and Ruentexin? so significant? In addition, the semi-annual report of Nanshan Life Insurance will not be officially announced until mid-August, but before that, market whispers have been flying all over the sky, and some media even said that the net worth of Nanshan Life Insurance in the second quarter may plummet by 300 billion yuan in one breath!
Various claims are constantly being rumored in the market, but in fact, to decipher the authenticity of these whispers, through the disclosure of Nanshan Life Insurance’s financial report, we can already have a glimpse.
First of all, let’s look at the main reasons for the decrease in net worth, which mainly comes from the double-killing of the stock market and the bond market.
The double killing of stocks and debts seriously affects the net worth of the group
From the financial report of Nanshan Life in the first quarter of this year, we can see the interest rate sensitivity analysis. For every 1% increase (or decrease) in interest rates, the net worth of Nanshan Life will decrease (or increase) by 213.7 billion yuan. If the interest rate of 10-year U.S. government bonds is used as the standard, the interest rate rose by 0.647% in the second quarter. It is estimated that if the bond position remains unchanged, the bond price caused by the increase in interest rates alone may reduce the net worth of Nanshan Life Insurance in the second quarter. 138.2 billion yuan.
Looking at the impact on the stock market, we can also see from the financial report that for every 10% drop (or increase) in the stock market, the net worth will decrease (or increase) by 51 billion yuan.Global stock markets hurt badly in the second quarter, with Taiwan down about 16%, U.S.Dow JonesThe decline is more than 11%, and the compromise is calculated at 13%. If Nanshan Life’s shareholding remains unchanged, the fall in the stock market in the second quarter will reduce Nanshan Life’s net worth by about 66 billion yuan.
Source: “Today Weekly” No. 1336
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