AIA Group: Value Trap After Regulations Erode China Market Economics (OTCMKTS:AAGIY)

Bloomberg/Bloomberg via Getty Images AIA (OTCPK:AAGIY) is a good mix of exposure to mature insurance markets (Hong Kong, Singapore) and growing insurance markets (China). Mature markets offer steady cash flow (premiums); growing markets offer growth, therefore, AIA is suitable for conservative investors looking for a play on “China will get rich before it gets old” thesis. However, AIA’s steady upward trajectory – a good run for more than 10+ years since listing in October 2010 – has stalled since 2021. Capital IQ What happened? COVID arrived, creating substantial hurdles to the face-to-face marketing necessary for sales. China’s strict COVID controls…