HK Stock Market Move | Domestic insurance stocks continue to rise, with the annual performance of the insurance industry showing promising results. Institutions are optimistic about the gradual optimization of industry liabilities and costs.

Domestic insurance stocks continued to rise. As of the time of publication, China Life Insurance (02628) rose by 4.03% to HK$27.38; The People's Insurance (01339) rose by 1.62% to HK$5.63; New China Life Insurance (01336) rose by 1.48% to HK$47.86; China Pacific Insurance (02601) rose by 1.01% to HK$34.04. On the news front, recently, listed insurance companies have successively disclosed their annual reports for 2025. According to Guosen statistical data, benefiting from the elasticity release on the investment side and the continuous optimization of the liability structure, the top 5 listed insurance companies have achieved a total operating income of RMB 2,928.129 billion, a year-on-year increase of 7.8% on a high base; and a total net profit attributable to shareholders of RMB 425.291 billion, a year-on-year increase of 22.4%. Huachuang Securities pointed out that recently, affected by geopolitical factors, the market has adjusted, which has also led to a correction in the investment side, including the insurance sector. Currently, the valuations of most insurance companies are below the 50th percentile of the past decade, indicating that the bottom value has emerged. In the short term, the performance of Q1 in 2026 is expected to be somewhat under pressure due to market volatility; in the medium to long term, with comprehensive regulation and industry-wide efforts, the industry's liability costs are gradually improving, and the risk of "spread loss" among the top players is expected to be mostly eliminated. PEV valuation is expected to recover towards 1x.