HK Stock Market Move | Chinese insurance stocks extend declines as the sector gradually trades on third-quarter earnings expectations; institutions expect some high-beta insurers to face notable pressure on single-quarter results.

Chinese insurance stocks extend declines. As of press time, New China Life Insurance (01336) fell 5.46% to HK$39.8; PICC GROUP (01339) fell 3.66% to HK$4.875; China Life Insurance (02628) fell 2.88% to HK$22.94; China Pacific Insurance (02601) fell 1.74% to HK$26. On the news front, the National Financial Regulatory Administration recently issued the "Notice on Carrying Out Investigation and Rectification of 'Quick-Return' Products," launching a comprehensive investigation and rectification of "quick-return" endowment insurance products. Donghai Securities noted that strengthened regulation during the "good start" period aims to eliminate liquidity risks caused by "short-term treatment of long-term policies." The short-term "good start" may face pressure, but in the long run it will improve insurers' liability duration structure and the stability of investment-side allocation. Huachuang Securities released a research report stating that the sector is gradually trading on third-quarter earnings expectations, and some high-beta insurers are expected to face notable pressure on single-quarter results, while the sector as a whole is also affected by the market pullback. On the liability side, under the impact of the high base in the third quarter and the new rules of Banking and Insurance Document No. 65, new premiums are expected to shrink significantly, dragging on NBV growth; in property insurance, catastrophe claims are expected to rise year-on-year under a strong El Nio phenomenon, and the "reporting and execution integration" is expected to bring expense optimization but will not fully offset the negative impact on the claims side.