2nd Feb 2016 18:14
LONDON (Alliance News) - Shares in life insurer Prudential PLC fell on Tuesday after a report on Bloomberg that China's foreign exchange regulator tightened restrictions on purchases of insurance products overseas.
Citing people familiar with the matter, Bloomberg said purchases of insurance products using UnionPay debit and credit cards will be capped at USD5,000 per transaction effective Thursday this week. There was no previous limit.
http://www.bloomberg.com/news/articles/2016-02-02/china-s-latest-measure-against-outflows-caps-insurance-purchases
The Financial Times reported that analysts blamed the fall in Prudential's share price on the Bloomberg report.
http://www.ft.com/fastft/2016/02/02/prudential-shares-fall-on-report-of-chinese-restriction/
Shares in Prudential closed down 8.2% at 1,217.50 pence on Tuesday, having touched a low of 1,206.00p.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
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