Mainland insurance stocks extended losses in afternoon trading. As of press time, NCI (01336) fell 4.17% to HK$48.2; CHINA LIFE (02628) dropped 3.52% to HK$21.95; CPIC (02601) declined 3% to HK$30.7; and PICC P&C (02328) slipped 0.37% to HK$16.26.

On the news front, the predetermined interest rate adjustment mechanism for insurance products has been officially activated, with major insurance companies intensively advancing the transition between old and new products. The latest data released by the China Insurance Association shows that the predetermined interest rate research value for ordinary personal insurance products stands at 1.99%, representing a 14 basis point decline from the previous period. This figure has remained more than 25 basis points below the current predetermined rate for two consecutive quarters, triggering the dynamic adjustment mechanism for the personal insurance industry's predetermined rates.

Dongwu Securities released a research report stating that the reduction in predetermined rates will drive down new business liability costs for insurance companies. With new business gradually diluting existing inventory, the average cost of existing inventory will also progressively improve. After the predetermined rate adjustment, the guaranteed yield of dividend insurance will be only 25 basis points lower than traditional insurance, while offering floating yield design that is more attractive to customers. The new business structure is expected to accelerate its shift toward dividend insurance, and the increased proportion of dividend insurance will further alleviate rigid cost pressures for insurance companies.