Taiping Insurance Shares Slide on Over $200 Million Exposure to Hong Kong Fire

Hongkong (Reuters) — Shares of China Taiping Insurance Holdings (0966.HK) fell sharply on Thursday amid concerns that the company faces more than $200 million in insurance exposure linked to a massive fire at a residential complex in Tai Po, where at least 55 people have died and nearly 300 remain unaccounted for.

The blaze swept through the densely packed Wang Fuk Court housing estate, engulfing bamboo scaffolding that spanned several buildings. Home to more than 4,600 residents across eight apartment blocks, the estate is located in Hong Kong’s northern district — an area already strained by the city’s long-running affordable housing shortage.

China Taiping’s shares dropped as much as 8.1% in early trading, hitting their lowest level since October 24 before closing down 1.92%. The decline contrasts with a 0.1% rise in the benchmark Hang Seng Index, underscoring investor anxiety around the potential financial impact.

According to publicly accessible records from meetings of Wang Fuk Court’s registered owners, residents approved the renewal of property insurance with China Taiping Insurance (Hong Kong) in December 2024. Analysts at Citigroup said the incident could deliver a significant blow to Hong Kong’s insurance sector, depending on the scale of claims and the final assessment of losses.

Meanwhile, Hong Kong police are investigating the construction company responsible for the scaffolding that fueled the spread of the fire. Authorities confirmed they have seized documents as part of the ongoing probe.