HK Stock Market Move | Chinese insurance stocks rise collectively; market volatility affects insurers' Q3 profits; after negative factors are priced in, low valuations highlight margin of safety.

Chinese insurance stocks rose collectively. As of press time, Ping An Insurance (02318) rose 3.18% to HK$49.92; China Life Insurance (02628) rose 3.05% to HK$24.36; PICC P&C (02328) rose 2.05% to HK$15.93; China Pacific Insurance (02601) rose 1.05% to HK$26.84. On the news front, listed insurers' third-quarter results are gradually being released. On October 28, China Pacific Insurance announced that in the third quarter of 2026, the company achieved net profit attributable to shareholders of approximately RMB5.628 billion, a year-on-year decrease of approximately 68.4%. The change in performance was mainly affected by capital market volatility. Data shows that in the first three quarters of 2026, China Pacific Insurance recorded a fair value change loss of approximately RMB24.515 billion, while in the first half of 2026 the company recorded a fair value change gain of approximately RMB2.985 billion. GF SEC previously pointed out that considering the overall adjustment in the equity market in the third quarter, insurers' investment returns may be somewhat dragged down, and profit performance may come under pressure, but the release of performance pressure may instead provide a better allocation timing for the sector the market's cautious expectations for third-quarter reports had already been priced in during the pre-holiday adjustment, and after the negative factors are priced in, the sector's low valuation will further highlight its margin of safety. Zhongtai's chief non-bank financial analyst said that in the short term, the insurance sector is seeing a easing of selling pressure from the capital side, while in the medium term, "deposit migration + continued 'slow bull' market" will boost value and profit growth.