HK Stock Market Move | Domestic insurance stocks across the board fell, with China Pacific Insurance (02601) plunging more than 7%. Institutions pointed out the short-term funding constraints affecting the valuation of insurance stocks.

Domestic insurance stocks are all on the decline. As of press time, China Pacific Insurance (02601) fell by 7.26% to HK$28.36; China Life Insurance (02628) fell by 6.53% to HK$28.04; New China Life Insurance (01336) fell by 5.26% to HK$49.36; PICC P&C (02328) fell by 4.12% to HK$14.91. On the news front, since the beginning of this year, the market has continued to tilt towards AI concepts and some cyclical sectors, with funds switching from low-volatility, defensive insurance sectors to high elasticity track sectors. Huachuang Securities pointed out that although equities have heated up since April, insurance has not shown a clear uptrend due to short-term funding concerns. It is expected that after the chips are exhausted, the equity boom may help boost the insurance sector. Orient Securities noted that since 2026, the insurance sector has consistently underperformed the market. The stock prices of major listed insurers have been under pressure in the first quarter, with the equity market showing some recovery since April, but the rebound in the insurance sector remains weaker than the Shanghai and Shenzhen 300. It is believed that the current market pricing of insurance stocks is more focused on realizing profits rather than simply improving the liability side. Pressure on investment yields, fluctuations in fair value changes, and disruptions in credit impairments are the main factors suppressing the valuation repair of the sector.