HK Stock Market Move | In the morning, the stock of domestic insurance companies fell. It is rumored that insurance companies will adjust the scheduled interest rates again. Institutions say that the industry investment side stocks and bonds are under pressure recently.

In the morning, domestic insurance stocks fell. As of press time, New China Life Insurance (01336) dropped 4.95% to HKD 21.1, China Life Insurance (02628) dropped 3.94% to HKD 13.16, China Pacific Insurance (02601) dropped 3.74% to HKD 21.9, and The People's Insurance (01339) dropped 1.63% to HKD 3.61. On the news front, there have been rumors in the market recently that insurance companies will adjust their scheduled interest rates again at the end of March. It is reported that after the upper limit of the scheduled interest rate for life insurance products was reduced from 3.5% to 3.0% in 2023, there has been another adjustment in 2024. Since October 2024, the upper limit of the scheduled interest rate for life insurance has officially entered the "2.0 era". Donghai Securities pointed out that last week, the correction in the sector was mainly due to market concerns about the dual pressure on stocks and bonds at the investment end. On one hand, the decline in long-term interest rates has led to pressure on re-allocation of returns. However, the phased reduction in scheduled interest rates combined with the promotion of dividend-based products by insurance companies has greatly reduced the cost of liabilities, and the overall risk of interest rate differentials is under control. On the other hand, the lackluster performance of the trading days at the beginning of the year, but the bank is relatively optimistic about the implementation of innovative monetary policy tools and active regulatory policy guidance, believing that the direction of regulatory improvement in the long-term vitality of the market remains unchanged. The sector's correction has fully released the market's adjustment expectations, and the upward elasticity is expected to accelerate. Therefore, attention should be paid to the opportunities for allocation at low valuations.