Ping An's 56% rally burns increasingly bearish short sellers

[HONG KONG] Ping An Insurance Group shares have soared almost 56 per cent this year, even as short sellers have grown increasingly bearish on the stock.

Short interest has more than doubled from this year's low in March, to 6.2 per cent of free float as of Aug 16, according to data from IHS Markit.

The pain may only get worse, if Ping An President Alex Ren proves right: The shares remain undervalued and have "large room" to run higher, he said in an interview Friday.

Ping An shares surged as much as 3.3 per cent Friday to the highest level in more than two years. The insurer reported higher earnings Thursday and hiked its dividend payout by 150 per cent.

BLOOMBERG