HK Stock Market Move | Property insurance stocks continue to fall, with insurance companies speeding up their bond issuance in June, in an effort to repair solvency indicators.

Domestic insurance stocks continued to decline. As of the time of writing, New China Life Insurance (01336) fell by 5.32% to HK$46.96, China Life Insurance (02628) fell by 4.49% to HK$27.2, China Pacific Insurance (02601) fell by 3.62% to HK$26.66, and PICC P&C (02328) fell by 1.88% to HK$14.07. According to 21st Century Business Herald, after entering June, the issuance of bonds by insurance companies has significantly accelerated. The direct drive comes from the industry's overall decline in solvency adequacy ratio indicators. An industry insider told reporters that after the implementation of new accounting standards and new financial instrument standards, fluctuations in insurance companies' net assets and solvency adequacy ratio may intensify. A report from Western Non-bank Research shows that as of the end of the first quarter of 2026, the average core/comprehensive solvency adequacy ratio of 72 life insurance companies was 137.65% and 189.87%, respectively, a decrease of 12.98 and 16.54 percentage points compared to the previous quarter. The average core/comprehensive solvency adequacy ratio of 87 property insurance companies was 305.47% and 322.37%, respectively, with a decrease of 7.51 and 7.69 percentage points compared to the previous quarter.