Changes in Hong Kong stocks | Domestic insurance stocks increased in the afternoon, and long-term interest rates showed a steady upward trend, which is expected to drive valuation repair for listed insurers

The Zhitong Finance App learned that the increase in domestic insurance stocks increased in the afternoon. As of press release, China Life Insurance (02628) rose 4.31% to HK$28.56; China Taibao (02601) rose 3.21% to HK$35.98; Xinhua Insurance (01336) rose 2.99% to HK$51.6; and Ping An of China (02318) rose 1.88% to HK$65.1.

CITIC Construction Investment released a research report saying that previously, in the context of the downward trend in long-term interest rates, since about 75%-80% of the overall allocation structure of insurance funds were fixed income assets, the market's expectations for future long-term investment returns of listed insurers were pessimistic, which directly suppressed life insurance sector valuations. However, recently long-term interest rates have shown a steady upward trend. Currently, the 10-year treasury bond yield is above 1.8%, which is expected to drive the valuation repair of listed insurers.

Guojin Securities pointed out that a large number of fixed deposits will expire next year. Dividend insurance is attractive for funds with low risk preferences and long-term wealth preservation and value-added claims, and the market share of large companies will continue to increase in the context of anti-domestic billing and dividend insurance transformation. It is expected that Kaimenhong's new premium and NBV will achieve double-digit growth. Currently, insurance valuations are low, and the allocation is very cost-effective, and we maintain positive recommendations. The focus is on recommending leading insurers with good expectations and good business quality.