ZhongAn Online P & C Insurance Co., Ltd (06060.HK), also known as ZA ONLINE, saw its shares plummet by 7.62% in intraday trading on Thursday. The significant drop comes in the wake of the company's announcement of a new H share placement aimed at raising approximately HK$3,896.3 million in net proceeds.

According to the company's statement, the placement involves issuing 1.42 billion new H shares. The funds raised will be used to supplement the company's capital, support fintech innovations, and for general corporate purposes. While this move is expected to enhance ZhongAn's market positioning and operational capabilities, the immediate market reaction has been negative, likely due to concerns about share dilution.

Despite the sharp decline in share price, it's worth noting that the most recent analyst rating on ZhongAn Online stock remains a Buy, with a price target of HK$12.40. This suggests that some market observers maintain a positive long-term outlook on the company, even as it faces short-term pressure from the share placement. Investors will be closely watching how ZhongAn utilizes the raised capital to drive future growth and whether it can overcome the current market skepticism.