The Zhitong Finance App learned that domestic insurance stocks rose in the afternoon. As of press release, China Taiping (00966) rose 7.44% to HK$8.66; Xinhua Insurance (01336) rose 4.42% to HK$17.5; China Taibao (02601) rose 4.27% to HK$20.5; and China Life Insurance (02628) rose 2.94% to HK$11.9.

Guotai Junan pointed out that the main pressure on life insurance profit growth comes from the downward trend on the investment side and the pressure on interest spreads brought about by rising debt costs. However, with the gradual introduction of policies relating to real estate and regulatory pressure to reduce debt costs, life insurance interest spreads are expected to ease marginally. The life insurance sector will usher in a valuation repair market. In addition to life insurance, with the acceleration of foreign capital inflows into Hong Kong stocks and improvements in the fundamentals of Hong Kong non-bank stocks themselves, there is more room for valuation repair in the Hong Kong stock non-bank sector, which is currently in an absolutely undervalued state.

Furthermore, the General Administration of Financial Supervision recently issued the “Notice Concerning Matters Relating to Commercial Banks' Insurance Agency Business”, which removes the limit on the number of cooperation between bank outlets and insurance companies, and makes it clear that insurance companies should ensure that they have offline service capabilities within the cooperative region. Ping An Securities pointed out that after the implementation of the “integrated reporting and banking” policy for banking insurance, the regulation will lift the quantitative restrictions on cooperation between bank branches and insurers, which will benefit leading insurers with operating standards and comprehensive advantages.