According to the ZhuoYue Financial News APP, mainland insurance stocks rose collectively in the afternoon. As of press time, China Life Insurance (02628) rose 3.9% to HKD 11.2; Ping An Insurance (02318) rose 3.46% to HKD 37.35; China Pacific Insurance (02601) rose 2.71% to HKD 20.5; and New China Life Insurance (01336) rose 2.29% to HKD 16.08.

On June 19th, Li Yunze, Director of the China Banking and Insurance Regulatory Commission, stated at the 2024 Lujiazui Forum that there is much room for China's insurance industry to serve the country's modernization. Insurance assets account for approximately 7% of China's total financial assets, while the international average is generally around 20%. He stated that he will accelerate the promotion of the rule of law in finance, improve the policy support system, and study and draft guidance opinions to promote the high-quality development of the insurance industry.

Kaifeng Securities released a research report stating that the growth rate of life insurance premiums improved in May, and the growth rate of NBV is expected to be good in the first half of 2024. The outlook for the liability side is optimistic for the whole year. The relaxation of real estate policies, the statement by the central bank on low yields of government bonds, and the improvement in equity markets compared to the same period last year are expected to drive assets. The estimated value and institutional holding positions of the life insurance sector are still in a low position, and excess income support brought by business prosperity and policy-side supports will drive asset-side growth and promote continuous recovery of the sector's estimated value. We remain bullish on the opportunities in the life insurance sector.