The Shenzhen-based insurer said yesterday the recent market turmoil is not suitable for its refinancing plan, so it will not submit application for domestic fundraising until November 7.

"The timing and condition for making the application in relation to the refinancing plan is not yet mature," it said in a statement to the local bourse.

It also told investors through the Shanghai stock exchange it might separate the convertible bonds and share sales into two different plans so as not to overload the market. "The rumors that China will announce a new set of rules to regulate major shareholders refinancing through second shares sales might be the trigger for the prompt decision," said one market watcher.

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Ping An, the mainland's second-largest insurer, announced its plans to refinance its future acquisition plans last January 20, hoping to raise as much as 160 billion yuan (HK$177.9 billion) through a combination of 41.2 billion yuan worth of convertible bonds and the sale of 1.2 billion new A shares. However, the large size of the refinancing has chilled the domestic market, the benchmark index falling a maximum of more than 50 percent during the past four months. Yesterday, the benchmark Shanghai Composite Index closed at 3,656, down 29.4 percent since Ping An announced its mega plan. H shares and A shares of the insurer during the same period were down 43.25 percent and 36.17 percent, respectively. The shares closed yesterday at HK$72.65 in Hong Kong and 62.67 yuan in Shanghai.

Although the plan was approved by shareholders in early March, criticism and complaints have piled up, prompting retail investors to urge the industry regulator to monitor possible impacts.