HK Stock Market Move | The intraday decrease in the shares of New China Life Insurance (01336) widened, falling by more than 5%. China Pacific Insurance (02601) is currently down by nearly 4%.

The closing stocks of domestic insurance companies fell further at the end of the day. As of the time of writing, New China Life Insurance (01336) fell by 5.29% to HK$46.54; The People's Insurance (01339) fell by 3.55% to HK$6.52; China Pacific Insurance (02601) fell by 3.82% to HK$35.24; China Life Insurance (02628) fell by 3.4% to HK$23.84. On the news front, at the Ping An Insurance earnings conference today, Ping An Insurance's deputy general manager and chief financial officer Fu Xin discussed the year-on-year decline in net profit of Ping An Insurance in the first half of the year, but the phenomenon of year-on-year growth in operating profit, attributing it to three main reasons: one-time accounting consolidation in the first quarter, issuance of convertible bonds, and the unrealized 60 billion profit from the stake in listed companies in the first half of the year not reflected in the profit statement. Fu Xin suggested that the market focus more on operating profit indicators. China Great Wall pointed out that affected by policies such as capacity reduction, the ten-year national bond yield rose to around 1.78%, and the insurance sector experienced high volatility influenced by new regulations for public funds and dividend style. The Insurance Asset Management Industry Association recently published the results of a survey on investor confidence in asset allocation preferences for the second half of 2025. Stocks are the preferred investment assets for insurance institutions in China in the second half of the year, followed by bonds and securities investment funds. We continue to cautiously optimistic about the allocation value of the insurance sector.