CPIC (02601) stock is soaring 5.06% in intraday trading, as Chinese insurance stocks listed in Hong Kong extend their gains. The rally comes on the heels of positive industry data and favorable interest rate developments that are boosting investor confidence in the sector.

The National Financial Regulatory Administration recently released data showing robust growth in the insurance industry's premium income. From January to August 2025, the sector recorded a 9.6% year-on-year increase, reaching RMB 4.7998 trillion. August alone saw a remarkable 35.6% surge in premium income, totaling RMB 591.3 billion. Personal insurance premiums experienced an even more impressive 49.7% year-on-year jump in August, driven by a "rush to buy before discontinuation" effect amid predefined interest rate reductions.

Adding to the positive sentiment, CITIC Securities released a research report highlighting that the recent slight uptick in long-term interest rates is beneficial for alleviating allocation pressure on insurance companies. The report suggests that current valuation levels of listed insurance companies remain low, offering sufficient long-term safety margins. With stabilizing and rising long-term interest rates, analysts believe there is still room for valuation recovery among listed insurance companies, including CPIC.