Chinese Insurance Sector Likely to Benefit From Strengthening Yuan -- Market Talk

Dow Jones01-07

0435 GMT - The outlook for Chinese insurance sector appears to be improving, says Ken Shih of DBS Group Research. He expects the yuan to continue a mild appreciation, which should support insurers' investment income. China's regulatory environment is also likely to remain favorable in FY 2026, while the government's campaign to curb price wars could also help support bond yields, the analyst adds in a note. DBS's top picks are Ping An Insurance and AIA Group, citing their higher contractual service margin exposure relative to peers. DBS raises its H-share target price for Ping An to HK$85.00 from HK$72.00 and for AIA to HK$106.00 from HK$103.00, maintaining buy ratings on both. Ping An H-shares are last down 0.35% at HK$71.75, while AIA shares are 0.9% lower at HK$85.25. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

January 06, 2026 23:35 ET (04:35 GMT)

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