HK Stock Market Move | Afternoon gains in domestic insurance stocks have expanded, long-term interest rates are stabilizing and rising, which is expected to drive the valuation restoration of listed insurance companies.

In the afternoon, the gains of domestic insurance stocks expanded. As of the time of writing, China Life Insurance (02628) rose by 4.31% to 28.56 Hong Kong dollars; China Pacific Insurance (02601) rose by 3.21% to 35.98 Hong Kong dollars; New China Life Insurance (01336) rose by 2.99% to 51.6 Hong Kong dollars; Ping An Insurance (02318) rose by 1.88% to 65.1 Hong Kong dollars. China Securities Co., Ltd. released a research report stating that previously, due to the trend of declining long-term interest rates, market expectations for the future long-term investment returns of listed insurers were relatively pessimistic, which directly suppressed the valuation of the life insurance sector. However, the long-term interest rates have recently stabilized and are showing signs of recovery. Currently, the yield on the 10-year government bond is above 1.8%, which is expected to drive a valuation recovery for listed insurers. Sinolink pointed out that a large amount of deposits will mature next year, and dividend insurance is attractive to funds with a preference for low risk and long-term wealth preservation and appreciation. Furthermore, under the background of anti-"involution" and the transformation of dividend insurance, the market share of large companies will continue to increase. It is anticipated that new business premiums and NBV will achieve double-digit growth. Currently, the valuation of insurance stocks is low, making them very cost-effective in terms of allocation. It is recommended to continue to maintain a positive outlook. Focus on insurers with good expectations for new business premiums and good business quality.