Domestic insurance stocks extended their declines in late trading. As of press time, NCI (01336) fell 5.29% to HK$46.54; PICC GROUP (01339) dropped 3.55% to HK$6.52; CPIC (02601) declined 3.82% to HK$35.24; CHINA LIFE (02628) fell 3.4% to HK$23.84.
On the news front, at China Ping An's earnings conference today, China Ping An's Deputy General Manager and CFO Fu Xin addressed the phenomenon of declining net profit but growing operating profit in the first half of the year, citing three main reasons: one-time accounting consolidation treatment in Q1, convertible bond issuance, and HK$60 billion unrealized gains from strategic investments in listed companies in the first half that were not reflected in the income statement. Fu Xin suggested that the market should pay more attention to operating profit indicators.
Great Wall Securities noted that affected by policies such as capacity reduction, the 10-year government bond yield has rebounded to around 1.78%. Influenced by new public fund regulations and dividend investment styles, the insurance sector has experienced high-level volatility. The Insurance Asset Management Association recently released the results of its investor confidence survey for the insurance asset management industry in the second half of 2025. In terms of asset allocation preferences, equities are the preferred investment assets for domestic insurance institutions in the second half of the year, followed by bonds and securities investment funds. The firm continues to maintain a cautiously optimistic view on the allocation value of the insurance sector.