According to reports, J.P. Morgan released a research note stating that it is valuable to compare the insurance markets of India and China during the quarterly earnings season. China's insurance industry is performing strongly, with three players issuing positive profit forecasts, leading to an upward revision in market consensus; in contrast, the performance of private insurance firms in India is mixed. J.P. Morgan highlights three key investment themes: a preference for state-owned enterprises over private ones, a preference for Indian non-life insurance over Chinese, and seeking opportunities among underperformers this year. The top picks include: China Life (02628), LIC (Life Insurance Corporation of India), Ping An (02318), and GIC Re (General Insurance Corporation of India). As the year draws to a close, J.P. Morgan reiterates its three key investment themes: 1. Preference for state-owned enterprises: favorable on state-owned firms (LIC, China Life) compared to private companies; 2. Sector rotation: looking for attractive re-entry points in India's non-life insurance sector while also considering exit points in China's non-life sector; 3. Value in underperformers: reassessing stocks that have lagged this year but show emerging value, such as Ping An, which currently trades at a forecast P/E ratio of 6 times for the 2026 fiscal year, with a dividend yield of 6%. J.P. Morgan indicates that the movements of Chinese insurance stocks are correlated with revisions in profit expectations. After a strong rise this year, the sector now trades at a consensus forecast P/E of 7 times for the 2025 fiscal year, with a dividend yield of 4%, which J.P. Morgan believes is attractive in terms of valuation. Companies like China Life have already announced strong net profit expectations for the first nine months, surpassing the consensus for the full year. Therefore, J.P. Morgan anticipates further upward revisions in profit and dividend forecasts, providing catalysts for stock prices. Additionally, ongoing policy support should help enhance product margins and diversify profit sources. J.P. Morgan's preferred stocks to overweight are China Life and Ping An.