Gelonghui, July 2 | Insurance stocks in the Hong Kong A market collectively strengthened. Among them, Xinhua Insurance rose more than 7% in the Hong Kong stock market, China Ping An rose more than 5%, and China Life Insurance rose more than 4%; in the A-share market, Xinhua Insurance rose more than 3%, and China Life Insurance rose nearly 2%. Donghai Securities recently released a weekly financial industry report stating that it is concerned about the growth rate of the life insurance business under the high base effect and is implementing mid-term dividends one after another to boost the sector's attractiveness. 1) The General Administration of Financial Regulation recently released data for the insurance industry for May. The cumulative growth rates of personal insurance and property insurance premiums for the first 5 months of 2024 were 12.1% and 3.0% respectively. Among them, the month-on-month growth rates in May were 12.8% and 3.4%, respectively, and the growth rates increased by 3.1 pp and 1.6 pp, respectively. Among them, it is particularly important to note that due to the reduction in scheduled interest rates, the life insurance business is in high demand. The year-on-year growth rate reached 15.6% in May. However, due to high base pressure in the same period last year, they are cautious about the growth rate of the June-July business, but they are optimistic about the increase in value after the risk of interest spreads and losses is mitigated. 2) China Financial Insurance, China Insurance, and China Life Insurance have recently announced plans to implement mid-term dividends. Combined with Xinhua Insurance, which previously announced plans to pay mid-term dividends, and Ping An of China, which has continued to pay mid-term dividends for many years, the vast majority of listed insurers have implemented the “National Nine Rules” call to promptly share the company's development dividends with investors and enhance their sense of return. In addition, the operating characteristics of high dividends and high dividends are also more in line with long-term capital allocation needs. The insurance sector is also expected to be more popular as a blue chip, and rising sentiment is driving the continued activation of asset-side beta attributes. In addition, J.P. Morgan Chase also recently stated that the quicker than expected recovery in the life insurance business, strengthened capital management policies, and product profit margin recovery will offset the potential risk of falling debt interest rates, and it is expected that domestic insurance stocks will use medium-term interest as a short-term catalyst. The bank gave China Ping An A Shares and H Shares and China Life Insurance H Shares a “plus” rating, making them the first choice among domestic insurance stocks. The bank estimates that insurance stocks in Hong Kong have an average dividend rate of 6.4% this year.