HK Stock Market Move | The domestic insurance stocks collectively rose, with Ping An Insurance (02318) closing up nearly 3%. The potential improvement in investment income from assets is expected to drive profitability of insurance companies.

Domestic insurance stocks collectively rose. As of the time of writing, ZA ONLINE (06060) rose by 4.53% to 16.63 Hong Kong dollars; The People's Insurance (01339) rose by 4.15% to 7.03 Hong Kong dollars; Ping An Insurance (02318) rose by 2.91% to 72.6 Hong Kong dollars; China Life Insurance (02628) rose by 2.8% to 34.5 Hong Kong dollars. On the news front, the China Banking and Insurance Regulatory Commission recently released the annual operating data for the insurance industry. The data shows that in 2025, the insurance industry achieved an original insurance premium income of around 6.12 trillion yuan, an increase of 7.43% year-on-year. The total compensation expenditure for the year was 2.44 trillion yuan, an increase of 6.2% year-on-year. By the end of 2025, the industry's total assets reached 41.31 trillion yuan, an increase of 15.06% from the beginning of the year. Huayuan Securities pointed out that the total balance of stock applications is 3.73 trillion yuan, an increase of 53.8% year-on-year. It is expected that on the one hand, the secondary equity market has been performing well in the past 25 years, with the fair value of assets rising. On the other hand, it is due to insurance funds responding to the implementation of policies for long-term funds entering the market and increasing equity asset allocation. With the expectation of high premium growth and a "slow bull" market in equities, it is expected that the balance of insurance funds use in 2026 will maintain double-digit growth, the proportion of equities will continue to rise, and investment income on the asset side is expected to drive improvement in insurance company profitability.