CMB International released a research report stating that the target price of China Life Insurance (02628) listed in Hong Kong has been raised from 15.5 Hong Kong dollars to 20 Hong Kong dollars, maintaining a "buy" rating. The company's earnings per share forecast for each year from 2021 to 2026 have been increased by 148%, 38%, and 31% respectively to 4.45 yuan, 2.58 yuan, and 2.61 yuan, reflecting the company's outstanding investment performance in the third quarter and improving fundamentals. Furthermore, they are optimistic about the company's profitability in the fourth quarter.

The bank predicts that the new business value of China Life Insurance will increase by 17% year-on-year. At the same time, they point out that the investment income in the third quarter is not sustainable. In the long run, they believe that increasing the allocation of high dividend yield stocks under the fair value measurement (FVOCI) will help stabilize the volatility of net profit and net asset value changes.