Cheng has 12% of Ping An Hong Kong tycoon Cheng Yutung, chairman of New World Development, is the second-largest shareholder of China's second-largest insurer, Ping An Insurance, holding 12 percent, a Hong Kong newspaper reported on Monday.

An investigation by the Ming Pao newspaper showed the Cheng family holds an aggregate 870 million A shares of Ping An Insurance through eight mainland incorporated companies.

The newspaper said the stock is currently worth HK$67 billion, noting that Cheng could sell the stock anytime because the lock-up period for the shares expired in March.

It gave no details about whether Cheng planned to sell shares.

Ping An H-shares closed at HK$76.35 yesterday, a rise of 0.05 percent.

HK dollar consolidates

The Hong Kong dollar regained some ground on Monday, consolidating after it hit a 10-week low against the US dollar last week.

The local currency was trading at 7.7943/44 against the US dollar at 0850 GMT, up 0.02 percent from late Friday trade in Asia.

One dealer at a European bank said the market spent the day in a narrow range, with some players adjusting their positions.

Activity was thin with markets in Tokyo and London closed for holidays, the dealer said.

He expected the spot rate to move in a 7.7920 and 7.7950 range in the near term.

But some dealers said the market was in a consolidation mood after the USD/HKD spot rate met resistance above 7.7970 last Friday.

The local currency had touched a low of 7.7975 on Friday afternoon, its weakest level since Feb. 25.

The Hong Kong dollar is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85.

Local interbank rates were little changed on Monday despite some fundraising activity in the stock market.

Dealers said they did not expect upcoming IPOs to draw much attention due to recent volatility in the stock market.

Reuters

(HK Edition 05/06/2008 page2)