Jinwu Financial News | Domestic insurance stocks generally rose. China Taibao (02601) rose 3.38%, while China Life Insurance (02628), AIA (01299), Zhongan Online (06060), and Ping An (02318) rose more than 2%.
According to the news, Dongwu Securities said that the short-term central bank's statement that long-term interest rates are too low, that the 1Q24 quarterly report exceeds expectations, and that if the new “Ten National Rules” of insurance are implemented in 2H24, it will greatly catalyze the valuation of the current insurance sector, especially life insurance stocks. Continue to recommend pure life insurance targets that fully benefit from the reversal of asset-side expectations from the bottom.
China Aviation Securities said that due to the liberalization of purchase restrictions in Hangzhou and many other places, the real estate sector continues to rebound. Real estate's pressure on the insurance asset side is expected to ease. However, judging from the performance of insurers reported in the first quarter, the value of insurers' new business has rebounded, and the negative side is expected to improve further.
CITIC Securities said that the PB valuation of insurance stocks is currently low, and it is a beta sector affected by all aspects of the economy, interest rates, stock market, real estate, etc. From a marginal point of view, as long as factors such as interest rates stabilize, the stock market stabilizes, real estate is relaxed normally, and economic margins are improving, as well as policy changes, such as factors such as the nine rules of the new country requiring increased dividends and dividend tax adjustments for Hong Kong stocks, insurance stocks, which are a strong beta sector, are expected to continue to interpret the market. The bank maintains the insurance industry's “better than the market” rating, and suggests a balanced allocation of leading insurance stocks among individual stocks.