Prudential PLC's Robust Hong Kong Momentum Set to Continue

Dow Jones09-22 15:56

0756 GMT - Prudential PLC's robust Hong Kong momentum is set to continue, says DBS Group Research's Ken Shih in a note. This momentum is supported by increasing contribution from mainland Chinese employees in Hong Kong, the analyst says. The insurer also indicated that business activities in the mainland Chinese visitors segment remained steady from 1H, despite news regarding taxation on offshore insurance returns, the analyst notes. Meanwhile, the Chinese bancassurance segment is likely to see near-term adjustments on tighter expense rules, but its upbeat outlook remains, given a bancassurance partner's expansion into the high-net-worth wealth segment. DBS maintains its buy rating and 138.00 Hong Kong dollar target price on Prudential's Hong Kong-listed shares, which fall 1.0% to HK$101.60.

 

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