HK Stock Market Move | Afternoon rebound in the domestic insurance sector, Ping An Insurance (02318) surged more than 5%, institutions said that the industry cycle is officially established in a positive direction.

During the afternoon session, insurance stocks rose. As of the time of publication, Ping An Insurance (02318) increased by 5.03% to HK$59.5; China Pacific Insurance (02601) rose by 4.04% to HK$33; China Life Insurance (02628) was up by 3.66% to HK$27.74; New China Life Insurance (01336) increased by 3.03% to HK$48.3; and PICC P&C (02328) rose by 1.12% to HK$17.19. On the news front, Morgan Stanley released a research report stating that Ping An Insurance has been added to their watchlist as a top pick. The target price for Ping An Insurance's H shares has been raised by 27% to HK$89, and the A shares target price has been increased by 21% to RMB 85. Morgan Stanley believes that Ping An Insurance is now more bullish, and they believe that Ping An can seize key growth opportunities in household finance, healthcare, and elderly care. At the same time, the market's main concerns are gradually being alleviated, paving the way for valuation improvements. A CITIC SEC research report points out that the insurance industry has moved from a narrative of balance sheet decline to a phase of benign expansion, with the cyclical upturn firmly established. It is expected that the upward trend will further strengthen by 2026, reflected in: the recovery and sustained rapid growth of net assets, the increased popularity of dividend insurance as a major product, the concentration of market share in the bancassurance channel, and the great potential for total growth, with insurance funds as patient capital mainstays. Currently, the asset structure is benefiting from low bond yields and the market pattern of a slow bull market.