HK Stock Market Move | Domestic insurance stocks collectively declined, El Nio may rapidly strengthen, institutions point out the importance of monitoring the impact of natural disasters on property insurance claims.

Domestic insurance stocks collectively fell, as of the time of publication, New China Life Insurance (01336) fell 5.74% to HKD 42.7; China Life Insurance (02628) fell 4.57% to HKD 27.12; PICC P&C (02328) fell 2.47% to HKD 13.83; China Pacific Insurance (02601) fell 1.61% to HKD 26.96. On the news front, recent data updated by the World Meteorological Organization shows that El Nio is expected to rapidly strengthen from July to September 2026. Guotai Haitong pointed out that El Nio usually disrupts China's rainy season precipitation, typhoon paths, floods, and episodic droughts by changing the West Pacific subtropical high pressure, monsoon transport, and precipitation belt distribution, affecting agricultural insurance, vehicle insurance, commercial insurance, and catastrophe-related claims. The bank calculates that during a strong El Nio phase, the performance of P&C insurance companies' COR and claims ratio will vary. It is worth noting that China Life Insurance announced that the company plans to invest RMB 4.999 billion to jointly establish a partnership enterprise with China Life Industry Investment Management Co., Ltd., focusing on investment in semiconductor industry companies. Analysts point out that insurance funds and the semiconductor industry naturally match in terms of time cycles. Insurance funds have liabilities that last for over ten years, which align well with the long research, manufacturing, and industrialization cycles of the semiconductor industry.