HK Stock Market Move | China Pacific Insurance (02601) up nearly 5%, annual net profit expected to increase by 70% year-on-year, long-term incremental capital entering the market soon.

China Pacific Insurance (02601) rose nearly 5%, reaching a rise of 4.7% at the time of writing, trading at 23.6 Hong Kong dollars with a turnover of 1.89 billion Hong Kong dollars. In terms of news, China Pacific Insurance announced positive earnings yesterday, expecting the company's net profit attributable to the parent company's shareholders for the year 2024 to be approximately 42.2 billion to 46.3 billion yuan, an increase of about 14.9 billion to 19 billion yuan compared to the same period last year, an expected increase of about 55% to 70%. This is mainly due to a series of major favorable national policies, overall upward fluctuation in the capital market performance, significant growth in investment income for the company, and the continuous solidification of the value basis of the insurance business, driving a significant increase in net profit. In addition, 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," clarifying the increase in the proportion and stability of A-share investments by commercial insurance funds. Founder believes that this plan will help introduce incremental market funds and stabilize stock market performance. Recently, the non-bank sector has witnessed a significant correction, with high valuation percentile price ratios. On the asset side, as macro policies gradually exert force and market warming expectations strengthen, pressure on insurers' investment side will also be alleviated, with expectations of significant improvement in equity investment and strong valuation recovery momentum. On the liability side, as bank deposit rates continue to decline and residents' savings demand remains strong, the down trend in predetermined rates is expected to decrease liability costs, improving product NBVM. Insurers' profits and NBV in the first quarter of 2025 are expected to continue to grow, and the investment opportunities in the insurance sector are still promising.