Jinwu Financial News | Insurance stocks collectively rose, with New China Life Insurance (01336) up 4.55%, ZA Online (06060) up 4.07%, China Pacific Insurance (02601) up 3.83%, China Life Insurance (02628) up 2.8%, Sunshine Ins (06963) up 2.53%, and Ping An Insurance (02318) up 2.52%.
Soochow believes that the current market savings demand remains strong, and under the ongoing regulatory guidance for insurance companies to reduce liability costs, the pressure on insurance company interest spreads is expected to gradually ease. Recently, the yield on ten-year government bonds has dropped to about 1.96%. The bank forecasts that as the domestic economy recovers, if long-term rates stabilize or recover upwards, the pressure on new fixed income investment yields for insurance companies will be alleviated. Currently, public funds' hold positions in insurance stocks remain low, and valuations have adequately reflected negative factors. As of December 4, 2024, the valuation of the insurance sector is at 0.57-0.89 times 2024 EP/EV, which is at a historical low, and the industry maintains a 'shareholding' rating.
