PING An Insurance (Group) Co, China's second-biggest insurer, may raise 20 billion yuan (US$2.5 billion) in a domestic share sale in the first half of next year.

Ping An may sell as many as 1 billion shares. The Shenzhen-based company's Hong Kong-traded stock has doubled in the past year, outpacing the benchmark Hang Seng Index's 14 percent gain.

The Chinese company needs money to marry banking and insurance, a strategy abandoned by global firms including New York-based Citigroup Inc and Zurich-based Credit Suisse Group. Ping An aims to garner two-thirds of revenue from outside insurance within 10 years.

Chairman Peter Ma, 50, agreed in July to buy Shenzhen Commercial Bank for 4.9 billion yuan.

"Ping An needs money to finance takeovers," said Simon Hua, an executive director at BOC International in Shanghai who covers China's domestic stock market. "Their clients are in China, so it makes sense to sell shares locally. A domestic listing can improve brand awareness."

Ping An's domestic share offering comes after China Life Insurance Co, the nation's biggest insurer, last month said directors approved the sale of 1.5 billion new shares in Shanghai. The offer may raise about US$2.6 billion, based on the price of its Hong Kong-traded stock, making China Life the nation's first insurer to be publicly traded at home.

China Life's Hong Kong shares have more than doubled in the past year. China Life has an insolvency ratio of 2.53 times the regulatory minimum as of June 30, compared with 1.41 times at the life unit of Ping An at the end of last year. The gauge measures the ability of an insurer to meet its liabilities.

Ping An's "solvency margin is already lower than that of China Life," BOC's Hua said. "It definitely has more fundraising needs."

Citic Securities Co, Galaxy Securities Co and Goldman Sachs Group Inc's local venture were hired to arrange the sale.

Source:佚名