On December 15, Ping An Insurance (Group) Company of China, Ltd. (A-shares: 601318) rose over 5%, hitting a high of 67.44 yuan, marking its highest level since April 2021. Meanwhile, its H-shares (02318) climbed more than 3%, reaching 66 HKD, a peak not seen since June 2021.

The rally follows recent regulatory adjustments by China's National Financial Regulatory Administration, which lowered risk factors for insurers' related businesses. This move enhances capital efficiency for equity asset allocation, further opening channels for insurance funds to enter the market.

As a leading domestic insurance stock, Ping An has garnered bullish outlooks from major institutions. CITIC Securities included it in its 2025 high-to-low rotation stock picks, citing Ping An's forward-looking interest rate cycle strategy, superior long-term bond holdings, and high-dividend positioning. The firm also highlighted Ping An's leading market expansion in bancassurance and policy value ratios, with improving insurance contract service margins signaling a qualitative transformation. While alpha returns may be gradual, they are deemed stable, and the company's increased equity exposure strengthens its beta attributes, positioning it well for a bullish cycle.

CICC projects that by 2026, the life insurance sector will re-enter a golden development phase, with more positive trends on the liability side. The investment logic is expected to shift from "seeking revaluation of existing businesses" back to "valuing growth capability premiums," potentially restoring top-tier insurers' valuations above 1.0x P/EV. CICC raised Ping An's A-share target price from 74.4 yuan to 89.8 yuan and H-share target from 71 HKD to 99.4 HKD, maintaining an "Outperform" rating.

UBS reiterated Ping An as its top sector pick, assigning a "Buy" rating with a 70 HKD H-share target, citing attractive risk-reward dynamics. The bank noted accelerated Q4 operating profit growth, alongside expected dividend yields of 4.9% and 5.1% for 2025 and 2026, supported by a clear dividend policy.

AVIC Securities advises monitoring insurers with strong comprehensive capabilities and balanced asset allocation strategies, such as Ping An and China Life, though sector valuation recovery remains contingent on bond, equity, and property market performance.