Proof at last that Chinese shares can be as toxic as securitised products – albeit on a smaller scale. China Life, the country’s top insurer, reported a 60 per cent plunge in year-on-year net profits in the first quarter after booking an $800m loss on the fair value of its investment portfolio.

China Life – and rival Ping An, which reports later this month – were always likely to take the biggest hit from falling share prices. Many Chinese companies have been playing the stock market but insurers have the biggest equity portfolios. Equities comprise 23 per cent of China Life’s investment portfolio.