Hong Kong's financial sector showed strong performance, with insurance stocks leading the gains. Ping An Insurance (Group) Company of China, Ltd. (PING AN) rose nearly 3%, reaching its highest level in over three years. Sunshine Insurance Group surged more than 2%, while China Life Insurance and New China Life Insurance gained nearly 2%.
Among brokerages, Guotai Junan and Haitong Securities climbed over 2%, GF Securities advanced nearly 2%, and China International Capital Corporation (CICC) rose more than 1%.
Analysts at Kaiyuan Securities noted that shifting household savings toward insurance products could sustain high growth in bancassurance. The transition to dividend-focused insurance products is expected to boost insurers' premium income during the peak sales season. Stabilizing long-term interest rates and improved equity returns may also enhance insurers' net asset value and profitability. Additionally, public fund allocation constraints could provide further momentum. The report highlights undervalued insurance stocks and potential catch-up opportunities in the brokerage sector.
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