HK Stock Market Move | The performance of property and casualty insurance stocks continues to rise recently, with insurers generally seeing improved investment returns in the first half of the year. Institutions are optimistic about the recovery of undervalued stocks.

Domestic insurance stocks continue their recent upward trend. As of the time of reporting, New China Life Insurance (01336) rose 5.14% to HKD 49.92; The People's Insurance (01339) rose 3.85% to HKD 6.21; Ping An Insurance (02318) rose 3.43% to HKD 57.35; China Pacific Insurance (02601) rose 3.15% to HKD 31.48; China Life Insurance (02628) rose 1.87% to HKD 30.54. On the news front, due to the continued optimization of investment layouts and the temporary improvement in the capital market, several insurance companies reported significant growth in their total investment income for the first half of the year. China Life Insurance reported total investment income of CNY 314.504 billion for the first half of the year, a year-on-year increase of 146.7%; The People's Insurance reported total investment income of CNY 66.327 billion, a year-on-year increase of 59.9%; Ping An Insurance reported total investment income of CNY 136.942 billion, a year-on-year increase of 42.3%; New China Life Insurance reported total investment income of CNY 57.525 billion, a year-on-year increase of 27%; China Pacific Insurance reported total investment income of CNY 66.022 billion, a year-on-year increase of 16.1%. CITIC Haitong released a research report stating that the mid-term performance reports of listed insurance companies have all been disclosed, with overall performance meeting expectations. The resonance between assets and liabilities has led to a continuous improvement in the performance of insurance companies. The long-term valuation center remains influenced by interest rates and asset-liability matching levels. It is expected that publicly listed insurance companies will continue to optimize asset allocation, steadily increase equity assets, enhance overall investment income, stabilize company profits and shareholder returns, and favor valuation recovery from low levels, maintaining an "overweight" rating for the industry.