China Life's Strong Guidance Likely Driven by Profit-taking in AI Stocks

Dow Jones07-16 11:57

0357 GMT - China Life Insurance's strong profit guidance could be partly driven by tactical profit-taking in Chinese artificial-intelligence and new-economy stocks, say DBS Group Research analysts in a note. The Chinese insurer expects its 1H preliminary profit to more-than triple from a year earlier, tracking ahead of consensus forecasts, say the analysts. The company partly attributed this to solid investment performance, implying its early investments in certain stocks are bearing fruit, they say. Chinese AI and new-economy stocks rallied in 2Q versus a more modest gain by the wider A-share market, they note. DBS maintains its buy rating but is reviewing its projections. China Life's Hong Kong-listed shares fall 0.6% to 27.82 Hong Kong dollars, while its stock in Shanghai declines 3.1% to 39.16 yuan. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

July 15, 2026 23:57 ET (03:57 GMT)

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