PING An Insurance (Group) Co, China's second-largest insurer, tumbled the most in six weeks in Hong Kong and Shanghai trading on speculation the company was getting closer to seeking Chinese regulatory approval for a share sale.

Ping An fell 4.57 percent to HK$72 in Hong Kong, while its Shanghai-traded shares dropped 8.1 percent to 62.08 yuan at the close of trading, Bloomberg Bews reported.

"Ping An's shares are down on rumors that it will proceed with a share offer in both the A and H share markets," said Olive Xia, an analyst at Core Pacific Yamaichi in Shanghai.

Ping An Insurance spokesman Richard Sheng said the company hasn't submitted its application for a share sale in China to the regulator.

"There're no further details on the sale," said Sheng. He declined to comment on whether the company intends to raise part of the funds in Hong Kong.

Ping An plans to sell as many as 1.2 billion additional shares to invest in more euro-denominated assets and may invest in more banks after spending US$2.7 billion on a stake in Belgium's Fortis in November, President Louis Cheung said at a March 5 shareholder meeting in Shenzhen.

The insurer, part-owned by HSBC Holdings Plc, also has investments in China Minsheng Banking Corp and Shenzhen Commercial Bank.

Ping An intends to seek regulatory approval for its plan to raise funds as soon as market sentiment improves, the South China Morning Post reported yesterday.