Chinese insurance stocks rallied broadly, with Ping An Insurance (Group) Company of China, Ltd. (02318) rising 3.18% to HK$49.92, China Life Insurance Company Limited (02628) gaining 3.05% to HK$24.36, PICC Property and Casualty Company Limited (02328) up 2.05% to HK$15.93, and China Pacific Insurance (Group) Co., Ltd. (02601) advancing 1.05% to HK$26.84.
On the news front, listed insurers are gradually releasing their third-quarter results. On October 28, China Pacific Insurance (Group) Co., Ltd. (02601) announced that in the third quarter of 2026, the company recorded a net profit attributable to shareholders of approximately RMB 5.628 billion, a year-on-year decline of about 68.4%. The earnings change was mainly due to fluctuations in the capital market. Data showed that in the first three quarters of 2026, China Pacific Insurance (Group) Co., Ltd. (02601) posted a fair value change loss of approximately RMB 24.515 billion, while in the first half of 2026 the company recorded a fair value change gain of approximately RMB 2.985 billion.
GF Securities previously noted that given the overall adjustment in the equity market during the third quarter, insurers' investment income may be somewhat dragged down, and profit performance may come under pressure. However, the release of earnings pressure could instead provide a better allocation entry point for the sector — the market's cautious expectations for third-quarter reports had already been priced in during the pre-holiday adjustment, and after the negative factors are digested, the sector's low valuation will further highlight its safety margin.
The chief non-bank financial analyst at Zhongtai Securities stated that in the short term, the insurance sector is seeing relief from capital-side selling pressure, while in the medium term, "deposit migration plus the continuation of a 'slow bull' market" will boost value and profit growth.
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