Insurance stocks in Hong Kong continued their downward trend.

NCI (01336) fell 5.32% to HK$46.96.

CHINA LIFE (02628) dropped 4.49% to HK$27.20.

CPIC (02601) declined 3.62% to HK$26.66.

PICC P&C (02328) decreased 1.88% to HK$14.07.

This movement follows reports that insurance companies significantly accelerated their debt issuance activities in June.

The primary catalyst for this trend is a widespread decline in the industry's solvency adequacy ratios.

Industry sources indicate that the implementation of new accounting standards and new financial instrument rules is likely to increase volatility in insurers' net assets and solvency ratios.

Research data shows that by the end of the first quarter, the average core and comprehensive solvency adequacy ratios for 72 life insurance companies stood at 137.65% and 189.87%, respectively, marking sequential declines of 12.98 and 16.54 percentage points.

For 87 property and casualty insurers, the average core and comprehensive ratios were 305.47% and 322.37%, down by 7.51 and 7.69 percentage points from the previous quarter.