Ping An Announces The Establishment of Asset Management Firm in Hong Kong

Hong Kong, June 28, 2006 –Ping An Insurance (Group) Company of China, Ltd. (“Ping An” or “the Group”; HKSE: 2318), has registered a new company to manage its international investments, shortly after approval by the State Council of a new policy allowing China’s insurers to invest a portion of their assets abroad.

Announced on June 26, 2006, the new policy supports reforms in the capital structure of the insurance industry including foreign investment. China Ping An Asset Management (Hong Kong) Company, Ltd. finished business registration in Hong Kong, following authorization by the China Insurance Regulatory Commission.

Ping An’s new asset management firm, together with Ping An Asset Management Co., Ltd. based in Shanghai, will strive to establish a global investment and asset management platform as well as managing Ping An’s global investments.

Sun Jianyi, Executive Vice President of Ping An said:  “The launch of China Ping An Asset Management Company (Hong Kong) Company Ltd. is an important strategic move for Ping An. Asset management will become one of three major pillars for our growth. By establishing our asset management firm in a major international financial capital, we will be able to leverage from Hong Kong’s strengths in terms of rule of law, its dynamic business environment, and outstanding pool of highly qualified financial professionals. Our ultimate objective is to develop global assets to improve risk management and returns as well as to improve our strategic position domestically and internationally.”

The newly established company, together with Shanghai based Ping An Asset Management Co., Ltd., will form a unified asset management platform for the Company. The platform will invest and manage international assets on behalf of its parent company as well as third parties. The new firm aims to become a top tier firm within three to five years. It will introduce innovative financial products and services based on international best practice, in order to improve in-house skills as well as optimize the structure of liabilities and assets.

“Among our ten national principles is insurance sector reform. We believe that insurance sector investments in international markets will increase, together with the expansion in the number and types of insurance products,” Mr. Sun said. “We have hired McKinsey, the international consulting firm, to assist us in the design of asset management strategies. We intend to build a first-class team, taking advantage of Hong Kong’s unique resources as a financial center.”

Ping An’s new asset management firm has completed corporate registration procedures and has office space under lease. In its current phase, it will focus on operational planning and recruitment. It has hired senior financial professionals from firms including Goldman Sachs, Morgan Stanley and ING Barings, and is scaling up to a team of 50 market professionals, all of whom will be based in Hong Kong.

Chen Dexian, currently the vice chairman of Ping An Asset Management Co., Ltd., will become the chairman of China Ping An Asset Management Company (Hong Kong) Company Ltd., in addition to becoming chairman of Ping An Asset Management Co., Ltd. He replaces the previous chairman, Young Wen Binn, whose contract has expired. Mr. Sun Jianyi said: “The Company would like to take this valuable opportunity to thank Mr. Young for his contributions to its investment business and team building and wish him every success in the future.”

Mr. Chen graduated from the University of Hong Kong and was Director of BNP PARIBAS Asset Management Asia LTD. Hong Kong, China Development. He has worked as a consultant to Ping An in its asset management business since 2001. He joined the Company in 2004 as vice chairman of the asset management company.

Mr. Sun said: “Ping An Asset Management has a strong team, and we do not expect the change in senior management to have a substantive impact as we execute our plan to develop a global asset management business. We plan to build expertise both internally and through international recruitment. We are looking for candidates with proven track records in asset management, as well as the energy and drive to build a top international asset management firm.”