AMP Share Price Plunges as China Earnings Disappoint
AMP Limited (ASX:AMP) shares plunged 9.36% on Tuesday, November 3, closing at A$2.13 as investors assessed weaker profitability at the Australian financial services group’s Chinese pension investment. The stock lost A$0.22 during the session, following a 7.48% decline on Monday. AMP shares have consequently fallen approximately 16% across two trading sessions. The sharp sell-off followed disappointing third-quarter earnings from China Life Pension Company (CLPC), raising concerns about the sustainability of one of AMP’s fastest-growing profit contributors.
China Life Pension Profit Slowdown Raises Concerns
China Life Pension Company’s third-quarter solvency report, released on October 30, showed net profit declining 0.3% year-on-year to RMB486 million.
This represented a significant slowdown from the 58% profit growth recorded in the June quarter.
AMP owns 19.99% of CLPC and recognises its share of earnings within its broader partnerships portfolio.
The importance of these investments became evident in AMP’s first-half 2026 results, when its combined Chinese partnerships contributed A$56 million to underlying profit, compared with A$27 million a year earlier.
That represented growth of approximately 107%, making Chinese partnerships an increasingly important earnings driver.
However, the latest slowdown has raised questions about whether this growth momentum can continue.
AMP Maintains Guidance Following ASX Price Query
The Australian Securities Exchange questioned AMP on November 2 after its shares moved between an intraday high of A$2.51 and a low of A$2.22 amid unusually heavy trading.
AMP confirmed it was unaware of undisclosed price-sensitive information explaining the volatility.
Management nevertheless acknowledged that CLPC’s weaker quarterly profitability and subsequent analyst commentary may have contributed to the share-price movement.
Importantly, AMP maintained its FY2026 partnerships guidance, targeting a combined annualised return on investment of 12%–15%, subject to market conditions.
The unchanged guidance provides some reassurance, although investors remain concerned about potential earnings revisions.
What Comes Next for AMP Shares?
AMP’s near-term performance will depend partly on whether China Life Pension’s earnings stabilise and how analysts reassess the group’s profit outlook.
Reports indicate UBS reduced its earnings forecasts following the Chinese pension company’s disappointing results.
Nevertheless, AMP’s Australian banking, superannuation and wealth management businesses provide additional earnings sources beyond its Chinese partnerships.
Investors will closely monitor upcoming financial updates, partnership profitability and any changes to management guidance.
