Core Viewpoint - The insurance stocks in China have collectively declined, with significant drops observed in major companies such as China Life and New China Life, amidst a backdrop of changing investment strategies and market conditions [1] Group 1: Stock Performance - China Pacific Insurance (601319) fell by 4.59%, trading at 7.07 HKD [1] - New China Life (601336) decreased by 4.48%, trading at 48.62 HKD [1] - China Life (601628) dropped by 3.48%, trading at 26.04 HKD [1] - China Property & Casualty Insurance (02328) declined by 3.05%, trading at 18.42 HKD [1] Group 2: Investment Data - As of the end of Q3, the total stock investment balance for life and property insurance companies reached 3.62 trillion CNY, showing an increase in both scale and proportion compared to the end of Q2 [1] - The bond allocation ratio for life insurance companies has decreased quarter-on-quarter, while both life and property insurance companies have seen a decline in bank deposit allocation scale and proportion [1] Group 3: Analyst Insights - Liu Xinqi, Chief Analyst of Non-Bank Financials at Guotai Junan Securities, noted that the net investment yield for insurance companies is on a downward trend due to a low interest rate environment and narrowing credit spreads [1] - There is a pressing need for insurance companies to shift their asset allocation strategies from passive to active management, aiming to optimize asset allocation structures and achieve stable investment returns [1]

Core Viewpoint - The insurance sector in China is experiencing a collective decline in stock prices, with major companies like China Life and New China Life seeing significant drops in their share values. This trend is influenced by recent regulatory data indicating changes in investment strategies and market conditions [1]. Group 1: Stock Performance - China Pacific Insurance (01339) fell by 4.59%, trading at 7.07 HKD - New China Life (01336) decreased by 4.48%, trading at 48.62 HKD - China Life (02628) dropped by 3.48%, trading at 26.04 HKD - China Property & Casualty Insurance (02328) declined by 3.05%, trading at 18.42 HKD [1]. Group 2: Regulatory Data - As of the end of Q3, the total stock investment balance for life and property insurance companies reached 3.62 trillion CNY, showing an increase in both scale and proportion compared to the end of Q2 - The bond allocation ratio for life insurance companies has decreased quarter-on-quarter - Both life and property insurance companies have seen a decline in the scale and proportion of bank deposit allocations [1]. Group 3: Analyst Insights - Liu Xinqi, Chief Analyst of Non-Bank Financials at Guotai Junan Securities, notes that the net investment yield for insurance companies is on a downward trend due to a low interest rate environment and narrowing credit spreads - There is a pressing need for insurance companies to shift their asset allocation strategies from passive to active management - The focus should be on flexibly seizing market opportunities and continuously optimizing asset allocation structures to achieve stable investment returns [1].

Investment Rating - The report maintains a positive outlook on the investment banking and brokerage industry [7] Core Insights - The brokerage sector continues to see high trading activity, with expectations for sustained high growth in future performance, suggesting active allocation [2][4] - In the insurance sector, listed insurance companies reported significant growth in value, premiums, and profits in Q3, with a notable performance in the growth/technology-dominated equity market, challenging the traditional view of insurance investment as merely dividend-based [2][4] - The report indicates a potential for continued valuation recovery in the short term, supported by the logic of deposit migration, increased equity allocation, and improved new policy costs, enhancing the certainty of long-term ROE improvement [2][4] Summary by Sections Brokerage Sector - Trading activity remains high, with daily average transaction volume at 20,438.27 billion, up 1.56% week-on-week, and a daily turnover rate of 2.09%, up 3.64 basis points [5][40] - The report recommends active allocation in the brokerage sector due to the expected recovery in profitability and stability in commission rates [4][40] Insurance Sector - The cumulative premium income for the insurance industry reached 52,146 billion, with a year-on-year increase of 8.76%, driven by a 10.19% increase in life insurance premiums [22][23] - The report highlights the significant growth in premium income for major insurers, with New China Insurance reporting a 17% increase in premium income for the period from January 1 to October 31, 2025 [6][27] - The insurance sector is expected to see a valuation recovery, supported by improved asset allocation towards bonds and equity [22][27] Market Performance - The non-bank financial index increased by 0.2% this week, with a year-to-date increase of 7.6%, although it ranks lower compared to the broader market [5][18] - The report notes a mixed performance in the non-bank sector, with the insurance sector up 2.6% while the brokerage sector saw a decline of 0.9% [18][20] Financing Activities - In October, equity financing increased to 501.42 billion, up 20.4% month-on-month, while bond financing decreased to 6.56 trillion, down 19.2% [50] - The report anticipates an increase in stock underwriting scale due to new refinancing regulations, while bond underwriting will be influenced by interest rate changes [50] Asset Management - The report indicates a decline in new issuance of collective asset management products, with a total of 41.83 billion units issued in October, down 37.3% from the previous month [54] - The asset management sector is entering a recovery phase as the transition period for new regulations approaches its end [54]

Investment Rating - The report maintains an "Overweight" rating for the insurance industry [3][5]. Core Insights - As of Q3 2025, the balance of insurance funds has steadily increased, with stock assets' proportion rising while bond assets' proportion has decreased. The importance of active management in investments is expected to grow [3][5]. - The insurance industry fund utilization balance reached CNY 37.5 trillion, up 12.6% year-to-date, driven by stable growth in new and renewal premiums, with an overall premium growth of 8.8% year-on-year [5][6]. - The allocation to stock assets increased to CNY 3.62 trillion, representing 10.0% of total assets, up 2.5 percentage points year-to-date [5][6]. - The report emphasizes the need for insurance companies to shift from passive to active asset management strategies to enhance investment returns [5][6]. Summary by Sections Fund Utilization - The insurance industry's fund utilization balance as of Q3 2025 is CNY 37.5 trillion, a 12.6% increase from the beginning of the year. Life insurance accounts for CNY 33.7 trillion (up 12.6%), while property insurance accounts for CNY 2.4 trillion (up 7.5%) [5][6]. - Premium growth for the insurance industry was 8.8% year-on-year, with life insurance growing by 10.2% and property insurance by 4.9% [5][6]. Asset Allocation - Stock asset allocation reached CNY 3.62 trillion, a 1.19 trillion increase year-to-date, with a 10.0% share of total assets, up 2.5 percentage points from the start of the year [5][6]. - The proportion of bond assets is 50.3%, a slight decrease of 0.8 percentage points from the previous quarter, while bank deposits decreased to 7.9% [5][6]. - Other assets, primarily non-standard assets, decreased to 18.4% [5][6]. Investment Strategy - The report highlights the need for improved active management capabilities in the investment sector, as net investment yields are declining in a low-interest-rate environment [5][6]. - It is suggested that insurance companies should adopt more flexible asset allocation strategies to optimize returns [5][6]. Stock Recommendations - The report recommends specific stocks including New China Life, Ping An Insurance, China Pacific Insurance, China Life, and China People's Insurance Group [5][6].

Investment Rating - The report maintains a "Positive" outlook on the non-bank financial sector, highlighting the potential for growth in wealth management and asset management businesses within brokerages [3][4]. Core Insights - The report indicates a significant shift of household deposits from traditional banks to capital markets, with a notable increase in non-bank institution deposits by 1.85 trillion yuan in October 2025, while household deposits decreased by 1.34 trillion yuan [4]. - The insurance sector shows robust growth, with insurance funds' investment balance reaching 37.5 trillion yuan by the end of Q3 2025, reflecting a 3.4% increase from Q2 2025 and a 12.6% increase year-on-year [4]. - The report emphasizes the increasing attractiveness of the equity market, which is expected to benefit brokerage firms' wealth management and asset management businesses [4]. Summary by Sections Market Performance - The Shanghai Composite Index closed at 4,628.14 with a weekly change of -1.08%, while the non-bank index rose slightly by 0.16% [7]. - The brokerage sector index decreased by 1.01%, while the insurance sector index increased by 2.63% [7]. Non-Bank Financial Data - As of November 14, 2025, the average daily trading volume in the stock market was 20,283.14 billion yuan, reflecting a slight decrease of 0.76% from the previous period [46]. - The margin trading balance reached 25,065.34 billion yuan, an increase of 34.4% compared to the end of 2024 [19]. Key Investment Recommendations - The report recommends focusing on brokerage firms that will benefit from the increased attractiveness of the equity market, specifically highlighting firms such as GF Securities, Huatai Securities, and China Galaxy Securities [4]. - In the insurance sector, companies like China Life, China Pacific Insurance, and AIA are recommended due to their strong performance and growth potential [4].

Core Points - The Liaoning Financial Regulatory Bureau approved the request for the change of business location for the Pingluo Marketing Service Department of China People's Property Insurance Company Limited Shenyang Yuhong Branch [1] Summary by Sections - **Approval Details** - The new business location is set to be: 172 Jia-41, Xijiang North Street, Yuhong District, Shenyang City [1] - **Compliance Requirements** - The Shenyang Yuhong Branch is required to handle the change and obtain the new license in accordance with relevant regulations [1]

Core Viewpoint - The Liaoning Financial Regulatory Bureau has approved the change of business location for the Daguji Marketing Service Department of China People's Property Insurance Co., Ltd. in Faku County, indicating regulatory support for the company's operational adjustments [1] Group 1 - The business location has been officially changed to: No. 1, North Daguji Village, Daguji Town, Faku County, Shenyang City [1] - The approval was documented in the official notice numbered Liao Ren Bao Cai Xian Fa [1] - The company is required to handle the change and obtain the necessary permits in accordance with relevant regulations [1]

Core Insights - The net profit of the property insurance industry in Q3 2025 has surpassed 700 billion, marking a significant increase driven by both investment income and underwriting profits [7][9][11] - The "Big Three" insurance companies continue to dominate, with notable profits from PICC exceeding 300 billion and Ping An exceeding 150 billion [26][28] - Insurers with a scale of around 300 billion have doubled their profits, with China Life exceeding 34 billion and others like ZhongAn and Sunshine surpassing 10 billion [31][33] - A total of 16 insurance companies turned losses into profits, with BYD Insurance achieving profitability largely due to a zero commission rate [34][38] Profit Performance - In Q3 2025, 86 property insurance companies reported a total net profit of 778 billion, an increase of approximately 271 billion or over 53% year-on-year [8][11][19] - The average investment return rate for these companies rose to 3.03%, up from 2.05% in the previous year [11][14] - The overall cost ratio for the industry has improved, with over 60% of companies reporting a decrease in their comprehensive cost ratio [14][28] Company Rankings - The top three companies, known as the "Big Three," accounted for 74% of the industry's net profit, with PICC contributing 115 billion alone [19][26] - The profit rankings show that PICC leads with 336.29 billion, followed by Ping An with 155.55 billion, and Taiping with 87.67 billion [21][22][26] - Companies with profits exceeding 10 billion include China Life, ZhongAn, Sunshine, and Dadi, reflecting a strong recovery in the industry [31][33] Losses and Challenges - Despite the overall positive performance, 8 companies reported losses, with Qianhai United being the most significant at -0.64 billion [40][41] - The losses are primarily concentrated in smaller insurance companies, which struggle with high cost ratios and insufficient premium income [44][45] - Companies like Longjiang and Rongsheng have faced continuous losses due to high comprehensive cost ratios, making it difficult to offset losses with investment income [44][45]

Core Points - The launch of the "Qin Family Insurance" marks a significant step for Shaanxi in building a multi-level family risk protection system and promoting inclusive insurance services [1][2] - The project is a key product of the Shaanxi financial system's efforts to implement supply-side structural reforms and enhance social governance [1] - "Qin Family Insurance" is a collaborative effort among 19 provincial property insurance companies, providing standardized risk protection for residents [1][2] Industry Impact - The initiative aims to channel financial resources towards social welfare, enhancing the sense of security and well-being among the public [1] - The project has been successfully piloted in Xi'an for two years, demonstrating positive outcomes before its provincial rollout [1] - A strategic cooperation agreement was signed with the Xi'an Property Management Industry Association to promote insurance services within communities [2] Financial Contributions - The "Qin Family Insurance" alliance donated insurance coverage worth 87.3 million yuan to support advanced party members and families in need in the community [2]

Investment Rating - The report assigns a "Buy" rating to China Pacific Insurance (2328) with a target price of HKD 23.30, representing a 21.7% upside from the current price of HKD 18.62 [2][10]. Core Insights - The company is undergoing a structural transformation in its non-auto insurance business and is expanding internationally, which is expected to drive a second growth curve [5][8]. - In the first three quarters of 2025, the company achieved insurance service revenue of CNY 385.9 billion, a year-on-year increase of 5.9%, with net profit rising by 50.5% to CNY 40.3 billion [5]. - The non-auto insurance segment has become a core growth engine, with original premium income reaching CNY 223.06 billion, accounting for 50.3% of total premiums [6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported total investment income of CNY 35.9 billion, a 33% increase year-on-year, with an annualized total investment return rate of 5.4%, up by 0.8 percentage points [5]. - The projected earnings per share (EPS) for 2025 is HKD 2.575, reflecting a 14% increase from the previous estimate [2]. Non-Auto Insurance Business - The report highlights that the non-auto insurance business is expected to benefit from new regulatory policies aimed at improving profitability and cost efficiency [6]. - The company aims to maintain a combined cost ratio of less than 96% for auto insurance and 99% for non-auto insurance in 2025 [6]. International Expansion - The international strategy is designed to significantly increase overseas business within five years, focusing on supporting Chinese enterprises' global expansion, particularly in the new energy vehicle sector [7]. - The company has already established operations in Hong Kong and Thailand, with plans to expand into Europe and Southeast Asia [7]. Future Projections - The report forecasts net profits for 2025, 2026, and 2027 to be CNY 51.5 billion, CNY 54.3 billion, and CNY 59.1 billion, respectively, indicating a growth trajectory of 60%, 5%, and 9% [8].