HK Stock Market Move | Insurance stocks collectively fell China Pacific Insurance issued over 15.5 billion Hong Kong dollars of H-share convertible bonds institutions said the third quarter report is facing high base pressure

Domestic insurance stocks collectively fell. As of the time of writing, New China Life Insurance (01336) fell by 5.81% to HK$43.8; China Pacific Insurance (02601) fell by 4.7% to HK$31.26; The People's Insurance (01339) fell by 3.67% to HK$6.83; China Life Insurance (02628) fell by 3.23% to HK$22.18. In terms of news, China Pacific Insurance announced its plan to issue zero-coupon convertible bonds due in 2030, raising approximately HK$15.556 billion. If the bonds are all converted at the initial conversion price of HK$39.04 per share and no further shares are issued, the bonds can be converted into 398 million convertible shares, accounting for approximately 14.36% of the existing H-share issued on the announcement date and 4.14% of the total issued share capital. It is worth noting that in June of this year, Ping An Insurance also completed the issuance of zero-coupon H-share convertible bonds with a total principal amount of HK$11.765 billion. Industrial pointed out that the recent performance of the insurance sector has been relatively weak, mainly due to the significant increase in the investment end, leading to pressure on the third-quarter performance of insurance stocks. In the medium to long term, the value reassessment logic driven by the breakthrough in interest rate differentials is still ongoing. On one hand, the bottoming out of long-term interest rates and the increase in OCI equity allocation bring investment "efficiency", while on the other hand, the downward adjustment of benchmark interest rates and the integration of reports and banks drive the "cost reduction" of liabilities. The resonance of these two ends brings about an ongoing interest rate spread recovery, with the insurance sector, especially undervalued Hong Kong insurance stocks, having good investment value.