Chinese insurance stocks listed in Hong Kong extended their gains in afternoon trading. As of press time, NCI (01336) rose 6.84% to HK$45.94; CHINA LIFE (02628) gained 5.46% to HK$22.4; CPIC (02601) climbed 4.6% to HK$31.82; and PING AN (02318) advanced 2.96% to HK$53.95.

On the news front, the National Financial Regulatory Administration disclosed premium income data for the insurance industry. From January to August 2025, the insurance industry recorded premium income of RMB 4.7998 trillion, up 9.6% year-on-year. In August alone, the industry's premium income reached RMB 591.3 billion, surging 35.6% year-on-year. Personal insurance premium income in August totaled RMB 464.4 billion, jumping 49.7% year-on-year, with the "rush to buy before discontinuation" effect continuing to be prominent amid the predefined interest rate reduction catalyst. Property insurance premium income was RMB 126.8 billion, up 0.9% year-on-year.

CITIC Securities released a research report stating that the recent slight uptick in long-term interest rates is beneficial for alleviating allocation pressure on insurance companies. The current valuation levels excessively reflect the suppression of future investment returns by low interest rates. Listed insurance companies are actively increasing their allocation to high dividend strategies to hedge against the impact of falling interest rates on net investment yield.

The firm believes that current valuation levels of listed insurance companies remain at low levels with sufficient long-term safety margins. Against the backdrop of stabilizing and rising long-term interest rates, there is still room for valuation recovery among listed insurance companies.