HK Stock Market Move | Insurance stocks across the board fell, with New China Life Insurance (01336) dropping more than 6%. The net profit of insurance companies in Q4 may be affected by fluctuations in short-term investments.

Domestic insurance stocks fell across the board. As of the time of publication, New China Life Insurance (01336) fell 6.03% to HKD 56.85, China Life Insurance (02628) fell 5.61% to HKD 32.66, China Pacific Insurance (02601) fell 4.12% to HKD 36.8, and PICC P&C (02328) fell 1.71% to HKD 16.64. Soochow released a research report stating that the Q4 net profit growth of listed insurance companies may face some pressure, which may mainly come from the temporary adjustment of the growth sector. Since 2025, insurance companies have generally held high equity positions. In Q4 of 2025, the Wande Full A, ChiNext Index, and Kechuang 50 Index rose by +1.0%, -1.1%, and -10.1% respectively. Because insurance funds mainly hold growth style related positions under the FVTPL category, stock price declines will directly impact the current period profit and loss. However, since 2026, the growth style has continued to strengthen, and it is expected that any previous short-term floating losses have been significantly improved. Shenwan Hongyuan Group stated that the capital market experienced periodic fluctuations in the fourth quarter of 2025, combined with a significant increase in the equity allocation ratio of some insurance companies in the second half of 2025, the fourth-quarter profit performance of listed insurance companies may face temporary pressure. The group expects that the net profit attributable to shareholders of A-share listed insurance companies will increase by 22.7% to 426.4 billion yuan in 2025, a decrease of 10.9% compared to the previous three quarters of the year.