China`s second largest life insurer Ping An may sue embattled European financial group Fortis for planning to sell most of its assets without shareholder approval, state media said Thursday.

Ping An would not rule out legal action if Fortis continues to refuse discussing the disposal of assets at a shareholder meeting on December 1, the China Daily reported, citing Dutch newspaper Het Financieele Dagblad.

`The company has noticed some new developments in Fortis. We will keep a close eye on them and try our best to protect our rights and interests,` Sheng Ruisheng, a spokesman for Ping An, told AFP.

Hard hit by the global financial crisis, Fortis was dismantled last month, with its Dutch assets nationalised by the Netherlands government for 16.8 billion euros (21 billion dollars).

Its Belgian and Luxembourg operations were to be sold to French bank BNP Paribas.

Ping An spent 1.8 billion euros to acquire a 4.18 percent stake in Fortis last year -- one of the largest ever overseas acquisitions by a Chinese insurer. The stake has since been raised to 4.99 percent.

Ping An`s Fortis-related investment losses hit 15.7 billion yuan (2.3 billion dollars) as of the end of September, the China Daily said.

The Chinese insurer reported a loss of 7.8 billion yuan in the third quarter after impairment provisions, it said.