Ping An Life Insurance's frequent stake increases and holdings in its peers, to some extent, reflect its view that the current valuation of insurance stocks has been excessively compressed and also represent the Ping An group's recognition and optimism towards the development of its industry counterparts.
On January 27, the Hong Kong Stock Exchange disclosed that Ping An Life, on January 22, purchased an additional 11.891 million H-shares of China Life Insurance Company Limited (CHINA LIFE) at an average price of HK$32.0553 per share, involving approximately HK$381 million.
Following this purchase, Ping An Life's shareholding in China Life's H-shares increased to 681 million shares, raising its stake to 9.14%.
As early as August 2025, Ping An Life had already crossed the 5% disclosure threshold for its holdings in China Life's H-shares. Subsequently, Ping An Life has continued to increase its stake in China Life. On August 26, 2025, Ping An Life purchased an additional 12.683 million H-shares of China Life; on August 28, 2025, it purchased another 44.095 million H-shares.
Compared to the purchases made in August, the average price paid by Ping An Life in this recent purchase has seen a significant increase.
Since May 2025, the share price of China Life's H-shares has been on a sustained upward trajectory. The price was around HK$14 in May, and with the latest closing price at HK$35.18, it has surged by 151.29%.
Ping An Life's interest is not limited to China Life's H-shares; it has also increased its stake in China Pacific Insurance's H-shares.
In a long-term cycle of declining interest rate benchmarks, insurance capital faces immense rigid cost pressures on the liability side and must seek sufficiently large and stable assets to match these liabilities. The financial sector of the H-share market perfectly meets these requirements.
As one of the institutions that best understands the value of insurance companies, Ping An's substantial buying activity, to some extent, also reflects its belief that the current valuation of insurance stocks has been overly discounted, presenting long-term allocation value. Both China Life's H-shares and China Pacific Insurance's H-shares are considered high-dividend stocks, aligning with the investment logic of insurance capital, which further signifies the Ping An group's endorsement and positive outlook on the development of its peers.
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