HK Stock Market Move | Property insurance stocks all rose, six departments issued documents to promote long-term capital entering the market, institutions said that expectations for improvement on the asset side have significantly strengthened.

In the insurance sector, all internal insurance stocks have risen, as of the time of writing, New China Life Insurance (01336) rose by 4.67% to 24.65 Hong Kong dollars; China Life Insurance (02628) rose by 4.53% to 14.32 Hong Kong dollars; China Pacific Insurance (02601) rose by 4.25% to 23.3 Hong Kong dollars; Ping An Insurance (02318) rose by 3.34% to 43.35 Hong Kong dollars. On the news front, the Central Financial Office and six other departments jointly issued the "Implementation Plan for Promoting the Entry of Medium and Long-Term Funds into the Market," which explicitly aims to increase the proportion and stability of A-share investments by commercial insurance funds. Liao Min, Vice Minister of Finance, stated that the assessment system for state-owned commercial insurance companies will be revised in the long term. Wu Qing, Chairman of the China Securities Regulatory Commission, stated that the operating performance assessment of state-owned commercial insurance companies will change from one year to three years; and large state-owned insurance companies are striving to invest 30% of new premiums in A-shares starting from 2025. Founders pointed out that on the asset side, macroeconomic policies are gradually strengthening, market warming expectations are increasing, pressure on the investment side of insurance companies will also be alleviated, expectations for equity investment improvement are significantly enhanced, and valuation repair momentum is strong. On the liability side, bank deposit rates continue to decline, the strong demand for household savings, and the expected downward trend in reserve rates are expected to reduce the cost of liabilities and improve NBVM products. Insurance companies' profits and NBV are expected to continue to grow in the first quarter of 2025, and investment opportunities in the insurance sector continue to be favored.