Chinese insurance stocks continued their decline. As of press time, China Life Insurance Company Limited (02628) fell 3.59% to HK$24.7; China Pacific Insurance (Group) Co., Ltd. (02601) dropped 1.74% to HK$27.14; The People's Insurance Company (Group) of China Limited (01339) slipped 0.48% to HK$5.185; and New China Life Insurance Company Ltd. (01336) edged down 0.32% to HK$43.76.
On the news front, Liang Hong, founder of the billion-yuan-level private fund giant Hainan Xiwa, stated in his latest weekly report to fund holders that he learned "certain insurance asset management giants" had bought tech stocks at highs in July but significantly reduced positions to cut losses in late September. The remarks sparked considerable market attention and discussion. However, Liang Hong did not disclose which insurance asset management institutions were involved, nor did he reveal the specific trading details of these institutions.
Open Source Securities issued a research report stating that in the short term, pressure on the stock market and El Nino dragging down property insurance claims will bring significant pressure on insurers' Q3 earnings, with the active equity fund index down 15.5% in the third quarter. In the medium to long term, the insurance sector's valuation and institutional holdings remain at low levels. The logic of spread stabilization continues, supported by long-end interest rates oscillating at the bottom and liability costs continuing to decline. Premium growth is expected to continue amid deposit migration, and the industry's long-term logic is conducive to supporting sector valuation. Q3 investment performance, liability-side data, and COR may show sequential and year-over-year weakening, with style becoming the main driver.
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