HK Stock Market Move | Property insurance stocks continued their recent decline, with many insurance companies not announcing positive profit forecasts. JP Morgan said that the consensus in the market is further lowering risks limited.

Domestic insurance stocks continue to decline in the near term. As of the time of writing, China Life Insurance (02628) fell by 4.73% to HK$28.62; China Pacific Insurance (02601) fell by 3.55% to HK$33.12; New China Life Insurance (01336) fell by 3.35% to HK$52; The People's Insurance (01339) fell by 1.74% to HK$6.23. In terms of news, JP Morgan released a research report stating that domestic insurance stocks have lagged behind the broader market after the Spring Festival, as major insurance companies have not yet announced positive profit forecasts. The bank pointed out that unless there is a change in net profit of more than 50% for the year, insurance companies do not need to issue profit forecasts, and it does not believe that the lack of positive profit forecasts is a profit risk for this quarter. It is worth noting that the market consensus for 2026 net profit forecasts has already shown a year-on-year decline of 9%, so the bank believes that the risk of further downward adjustment in the current market consensus is limited. Open Source Securities released a research report stating that there have been significant adjustments in both H and A shares of insurance stocks around the Spring Festival holiday. In addition to the strong start to the year for the insurance sector leading to higher base numbers (opening red and expectations of a bull market), concerns about AI impact (potentially replacing 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 are causing pressure on the insurance sector, presenting an opportunity for positioning during the pullback.