HK Stock Market Move | Internal insurance stocks continue recent decline, with concerns over AI impact putting pressure on the insurance sector. Institutions still optimistic about sector valuation improvement.

Domestic insurance stocks continued their recent decline. As of the time of writing, China Life Insurance (02628) fell by 4.43% to HKD 30.18, People's Insurance (02601) fell by 3.9% to HKD 34.54, PICC P&C (02328) fell by 2.53% to HKD 15.78, and New China Life Insurance (01336) fell by 2.35% to HKD 53.95. Open Source Securities released a research report stating that adjustments in insurance H and A shares were more pronounced around the Spring Festival holiday. In addition to the insurance sector's strong performance at the beginning of 2026 (boosted by a good start to the year and bullish market expectations), worries about AI impact (potential alternatives for insurance intermediaries and sales channels; potential impact on white-collar employment and the economy) have also brought negative pressure to the sector. The bank believes that concerns about AI impact have put pressure on the insurance sector, creating opportunities for positioning in the market downturn. Guotai Haitong also believes that after the holiday, the non-banking sector, represented by insurance, experienced a significant decline. The bank believes that narratives such as "AI leading to productivity improvements will result in long-term deflation" were important catalysts for the sector's significant decline. Against the backdrop of stabilizing and rising interest rates, the bank still sees opportunities for valuation recovery in low-valuation insurance stocks.