Mainland insurance stocks expanded their gains in afternoon trading. As of press time, CPIC (02601) rose 4.85% to HK$32.84; PICC GROUP (01339) gained 3.28% to HK$6.93; PICC P&C (02328) climbed 3.27% to HK$18.93; and CHINA LIFE (02628) advanced 3% to HK$23.38.

On the news front, listed insurance companies demonstrated impressive dividend insurance transformation performance in the first half of the year. Taiping Life's dividend insurance accounted for 87.1% of long-term first-year premium income; CHINA LIFE's dividend insurance represented over 50% of individual insurance channel first-year premium income, with new policy premiums accounting for over 19.87%; CPIC Life's dividend insurance comprised 42.5% of new policy premiums, representing 16.1% of new policy premium income; and New China Life Insurance began focusing on promoting dividend insurance transformation from the second quarter, with the company's dividend insurance new policy premiums accounting for 10.9% in the first half.

Research reports indicate that dividend insurance independent accounts operate with independent investment strategies and higher risk appetite compared to general accounts. Following asymmetric adjustments to predetermined interest rates, the relative attractiveness of dividend insurance products is expected to further improve.

Market analysts suggest that the valuation recovery trend for insurance stocks that began in April 2024 essentially reflects the market's correction of overly pessimistic expectations regarding interest rate declines. The sector was previously significantly oversold due to concerns about interest rate spread risks. As investors deepen their understanding of "expectation gaps," the valuation recovery momentum for insurance stocks, particularly Hong Kong-listed insurance stocks, is expected to continue strengthening.