0408 GMT - The valuation multiples of Chinese life insurers and banks appear to be diverging, China Galaxy International's Michael Chang says in a note. These insurer's 12-month rolling forward price-to-book-value ratio premium over banks fell to around 6% as of Sept. 21, close to record-low levels, the analyst says. That is likely due to insurers facing uncertainties such as regulatory concerns linked to bancassurance, tax and capital flows, and high 3Q base effects, he adds. Meanwhile, Chinese banks are seeing improvement in underlying operating metrics, with 2026-2028 earnings per share likely to be relatively stable, he says. Still, China Galaxy International retains its overweight rating on insurers, citing likely solid 2026-2028 new business value growth. China Life Insurance and AIA are among its top sector picks.