HK Stock Market Move | Chinese insurance stocks rise collectively as the central bank's RMB100 billion swap facility operation lands; institutions say there is room for valuation recovery in insurers.

Chinese insurance stocks rose collectively. As of press time, China Pacific Insurance (02601) gained 4.40% to HK$27.5; PICC P&C (02328) rose 2.60% to HK$16.96; China Life Insurance (02628) gained 2.34% to HK$25.38; Ping An Insurance (02318) rose 2.09% to HK$51.35. On the news front, on November 2, the People's Bank of China, together with the National Financial Regulatory Administration and the China Securities Regulatory Commission, held two symposiums on the same day regarding the swap facility and the relending program for stock buybacks and increased shareholdings. The meetings made clear that the policy for relending for stock buybacks and increased shareholdings will shift from a phased arrangement to a long-term institutional arrangement, with the relending rate lowered from 1.25% to 1%. The central bank announced today that, based on the demand from participating institutions, it conducted swap facility operations for securities, fund, and insurance companies that day. The operation amount was RMB100 billion, using a rate-based bidding method, with 31 securities and fund companies participating in the bidding, and the winning rate was 10bp. Guotai Haitong pointed out that on the liability side, despite a phased decline in the growth rate of new single premiums for life insurance under a high base, the strong long-term demand for insurance savings remains unchanged, and improving the product term structure is conducive to supporting value growth; on the asset side, profits are under phased pressure amid equity market volatility, and it is expected that insurance companies will dynamically adjust their stock and bond allocation strategies based on the external market environment to promote stable earnings and dividends. The current share prices reflect extremely pessimistic investment-side expectations, and with interest rates stabilizing and rebounding, there is room for valuation recovery in listed insurers.