March 6, 2012 (Chinavestor) Shares of China Life Insurance (NYSE:LFC) plunged over 8% in the first 15 minutes of trading on Tuesday, the most among U.S. listed Chinese stocks with market cap of $500 million or more. We attribute the sharp decline to negative market outlook. Investors have to remember that Chinese insurers derive over 10% of net income from investment related activities. When markets head south, those investment incomes become elusive.And just how much investors in China are worried, consider this: Shanghai listed A-shares of shares of China Life Insurance (SHA:601628) fell the most among the largest components of the broad Shanghai Composite Index (SHA:000001) on Tuesday and Monday. Investors in Asia are really sceptical about short term market outlook.
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