Domestic insurance stocks declined across the board. As of press release, China Taibao (02601) fell 4.97% to HK$21.05; Xinhua Insurance (01336) fell 3.31% to HK$17.54; and China Life (02628) fell 2.69% to HK$12.32.
The Zhitong Finance App learned that domestic insurance stocks fell across the board. As of press release, China Taibao (02601) fell 4.97% to HK$21.05; Xinhua Insurance (01336) fell 3.31% to HK$17.54; and China Life (02628) fell 2.69% to HK$12.32.
Guotai Junan pointed out that the market is concerned that the insurance industry faces the risk of interest spreads and losses in a low interest rate environment, causing insurance stock valuations to continue to decline. Constrained by concerns about interest spreads and losses in the insurance industry, the market does not price the debt-side sales boom. Instead, it is worried that the current sales boom will increase the risk of future losses. The pricing logic of insurance stocks has gradually shifted from the debt side to the asset side.
Dongwu Securities said that the intensive release of favorable real estate policies has further clarified that the downward space for bond interest rates is coming to an end, and the recent downward trend in long-term interest rates is expected to continue. Looking at the medium term, as special treasury bonds begin to be issued, bond supply rises further, and long-term interest rates tend to rise and fall. Later, we need to pay attention to whether the real estate chain shows signs of stabilization. At the same time, along with the accelerated implementation of favorable real estate policies, real estate's valuation barriers to the insurance sector are expected to be opened up.