AMP Shares Plunge 9% as Rout Deepens After China Partner's Profit Stalls, Sending Stock Down 16% in Two Days

SYDNEY — Shares of AMP plunged more than 9% on Tuesday, making the wealth manager the worst performer on Australia's benchmark index for a second straight day, as investors reacted to slowing profit at its key Chinese pension partner.

AMP stock fell 22 cents, or 9.36%, to close at A$2.13, after trading between A$2.11 and A$2.31. Volume was heavy, with about 36.6 million shares changing hands. The company's market value fell to about A$5.1 billion.

The drop followed a 7.48% decline on Monday, leaving the shares down about 16% over two sessions.

China partner slows

The sell-off was triggered by a quarterly solvency report released Oct. 30 by China Life Pension Company, or CLPC, in which AMP holds a 19.99% stake.

The report showed CLPC's net profit slipped 0.3% from a year earlier to 486 million yuan in the September quarter, according to Market Index. That was a sharp slowdown from growth of 58% in the June quarter and 96% in the March quarter.

On a quarterly basis, CLPC's profit fell 9.5% from the June quarter, its second consecutive quarterly decline. Market Index attributed the weakness to falling Chinese stock markets, with the CSI 300 index down 12.5% in the third quarter and down further in the fourth quarter so far.

UBS cut its AMP earnings forecasts following the report, according to Market Index.

Why it matters

AMP's Chinese partnerships have become a major driver of its profit. In the first half of 2026, China partnerships contributed A$56 million, more than double the A$27 million a year earlier and almost a third of the group's underlying profit, with CLPC the main contributor.

That growth helped fuel a strong rally in AMP shares this year, as investors bet on China's expanding workplace pension system.

ASX price query

Monday's steep fall drew the attention of the Australian Securities Exchange, which issued a price query after AMP's shares swung from an intraday high of A$2.51 to a low of A$2.22 on heavy volume.

In its response, AMP said it was not aware of any information that had not been announced to the market that would explain the trading. The company pointed to CLPC's quarterly solvency report as a possible factor.

AMP said the CLPC update does not affect its partnership guidance for fiscal 2026 or fiscal 2027.

Buyback continues

AMP has continued buying back its own shares during the decline. The company bought about 4.47 million shares on Monday for about A$10.4 million, according to a filing.

AMP is conducting an on-market buyback of up to A$150 million, which began in August and runs through April 2027. It was the second A$150 million buyback announced this year.

Strong year before the slide

Despite the recent drop, AMP shares remain well above their lows. Before this week, the stock had risen about 28% in 2026 and more than doubled from its 52-week low of A$1.14 in March.

The shares remain up about 21% over the past year.

In the first half of 2026, AMP's statutory profit rose 57% to A$154 million.

Analysts' view

Most analysts remain positive on the stock. Five of nine analysts rate AMP a buy or strong buy, according to TradingView data cited by The Motley Fool.

Some commentators have argued the sell-off has gone too far, noting that the long-term growth of China's pension market remains intact.

What's next

Investors will watch for further updates on AMP's Chinese partnerships and any revisions to analyst forecasts. Movements in Chinese stock markets, which affect CLPC's investment returns, are also likely to influence AMP's share price.