Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 70.92%, Green Power Environmental (01330) at 69.34%, and Kaisa Group Holdings (01108) at 67.61% [1][2] - The largest increases in holding amounts over the last five trading days were seen in the following companies: Yingfu Fund (02800) with an increase of 4.041 billion, Hang Seng China Enterprises (02828) with 1.783 billion, and Alibaba - W (09988) with 1.455 billion [1][2] - The largest decreases in holding amounts over the last five trading days were recorded for China Mobile (00941) with a decrease of 2.395 billion, Innovent Biologics (01801) with 589 million, and UBTECH Robotics (09880) with 556 million [1][3] Group 1: Hong Kong Stock Connect Holding Ratios - China Telecom (00728) has a holding of 9.843 billion shares, representing 70.92% [2] - Green Power Environmental (01330) has a holding of 280 million shares, representing 69.34% [2] - Kaisa Group Holdings (01108) has a holding of 169 million shares, representing 67.61% [2] Group 2: Recent Increases in Holdings - Yingfu Fund (02800) saw an increase of 4.041 billion in holding amount, with a change of 14.9907 million shares [2] - Hang Seng China Enterprises (02828) increased by 1.783 billion, with a change of 1.8975 million shares [2] - Alibaba - W (09988) increased by 1.455 billion, with a change of 0.8637 million shares [2] Group 3: Recent Decreases in Holdings - China Mobile (00941) experienced a decrease of 2.395 billion, with a change of -3.01224 million shares [3] - Innovent Biologics (01801) saw a decrease of 589 million, with a change of -0.70319 million shares [3] - UBTECH Robotics (09880) had a decrease of 556 million, with a change of -0.38639 million shares [3]

Core Viewpoint - The insurance sector is becoming increasingly attractive to investors, with significant growth in both the A-share market and the Hong Kong insurance market, driven by lower interest rates and a shift of capital from traditional savings to higher-yielding insurance products [3][4][5]. Group 1: Insurance Market Performance - As of January 25, 2026, the A-share market's three-year return is 31.01%, while the insurance industry index has achieved a return of 51.75% [4]. - In the first three quarters of 2025, the five major listed insurance companies in A-shares reported a total net profit of 426 billion yuan, marking a year-on-year increase of 33.5% [5]. - Major insurance companies such as China Life and Ping An have shown substantial growth in both revenue and net profit, with China Life's net profit increasing by 60.5% year-on-year [6]. Group 2: Hong Kong Insurance Market Dynamics - The Hong Kong insurance market has seen a surge in mainland Chinese investors, with 50.5% year-on-year growth in new policy premiums in the first half of 2025, and 29% of new policies purchased by mainland visitors [10]. - Hong Kong's insurance products offer greater flexibility and higher investment returns compared to mainland products, attracting more sophisticated mainland investors [10][11]. - The majority of new policies in Hong Kong are denominated in US dollars (79.8%), highlighting the preference for foreign currency products among investors [12]. Group 3: Investment Opportunities in Hong Kong Insurance - Hong Kong's dividend insurance products have a much higher expected return compared to mainland products, with potential returns reaching 4%-6% over 30 years [20][21]. - The advantages of Hong Kong's critical illness insurance include higher leverage, multiple payout options, and broader coverage compared to mainland offerings [26][30]. - Innovative financial strategies, such as leveraging loans to invest in high-yield insurance products, are being explored by investors, although they carry significant risks [32][33]. Group 4: Broader Investment Trends - The Hong Kong stock market is becoming a preferred destination for mainland companies, with a record IPO financing amount of 286.3 billion HKD in 2025, indicating a robust market environment [34][35]. - The average daily trading volume in the Hong Kong stock market increased by 90% in 2025, reflecting heightened investor interest and market activity [38]. - The Hang Seng Index rose by 25.77% in 2025, showcasing strong performance amid favorable market conditions [39]. Group 5: Strategic Importance of Hong Kong - Nearly 80% of mainland enterprises are choosing Hong Kong as their global expansion starting point, benefiting from its financial services and strategic location [42]. - Hong Kong's unique position as a free trade port allows for flexible currency transactions, making it an attractive option for businesses looking to mitigate exchange rate risks [43]. - The presence of a large pool of professional service providers in Hong Kong supports mainland companies in navigating international markets effectively [46].

Group 1 - The top short-selling ratios are led by AIA Group (81299) and JD Health (86618) at 100.00%, followed by Baidu Group (89888) at 95.46% [1][2] - The highest short-selling amounts are recorded for Pop Mart (09992) at 1.3 billion, Alibaba (09988) at 1.26 billion, and Xiaomi Group (01810) at 1.064 billion [1][2] - The highest deviation values are for Baidu Group (89888) at 62.11%, Shenzhen Expressway (00548) at 37.02%, and SenseTime (80020) at 34.65% [1][2] Group 2 - The top ten short-selling ratios include AIA Group (81299) at 100.00%, JD Health (86618) at 100.00%, and Baidu Group (89888) at 95.46% [2] - The top ten short-selling amounts show Pop Mart (09992) leading with 1.3 billion, followed by Alibaba (09988) with 1.26 billion, and Xiaomi Group (01810) with 1.064 billion [2] - The top ten deviation values highlight Baidu Group (89888) at 62.11%, Shenzhen Expressway (00548) at 37.02%, and SenseTime (80020) at 34.65% [2]

Company News - China Merchants Bank (03968.HK) reported a revenue of 337.53 billion yuan for 2025, with a year-on-year growth of 0.01%; net profit reached 150.18 billion yuan, an increase of 1.21% year-on-year [6] - Everbright Securities (06178.HK) achieved a revenue of 10.863 billion yuan in 2025, reflecting a year-on-year growth of 13.18%; net profit was 3.729 billion yuan, up 21.92% year-on-year [7] - Shanghai Fudan (01385.HK) expects a revenue of approximately 3.93 billion to 4.03 billion yuan for 2025, representing a year-on-year increase of 9.46% to 12.25%; net profit is projected to be between 190 million to 283 million yuan, a decrease of about 66.82% to 50.58% year-on-year [7] - China Power International Development (01071.HK) reported a total power generation of 26.2 billion megawatt-hours for 2025, a year-on-year decline of approximately 6.99% [7] - China Life Insurance (02628.HK) plans to invest 4 billion yuan to establish a partnership focused on "technology innovation and industrial upgrading" in the Yangtze River Delta region; it also intends to contribute 8.492 billion yuan to establish a partnership with its subsidiary, focusing on investments in the elderly care industry [7] - Road King Infrastructure (01098.HK) intends to sell several property rights in the Road King New World commercial project in Ningbo for 100.3 million yuan [7] - China Metallurgical Group (01618.HK) forecasts a net profit of 1.3 billion to 1.6 billion yuan for 2025, a decrease of 76.28% to 80.73% year-on-year [8] Industry Trends - The toy, commercial aerospace, photovoltaic, and intelligent driving sectors are showing strong performance, while insurance and banking sectors continue to exhibit weakness [5]

Core Viewpoint - Insurance capital is increasingly flowing into the primary market, driven by the dual forces of regulatory policies promoting long-term investments and a low-interest-rate environment, with a focus on strategic emerging industries such as artificial intelligence and renewable energy [1][4]. Group 1: Investment Activities - On January 23, China Life announced an investment of 4 billion yuan to establish the Huizhi Yangtze River Delta (Shanghai) Private Fund Partnership, focusing on artificial intelligence and related applications [3]. - China Life also plans to establish the Beijing Guoshou Pension Industry Equity Investment Fund Phase II, concentrating on the pension industry [3]. - Since 2025, there has been a surge in insurance capital entering the private investment market, with significant funds being allocated to sectors like renewable energy and healthcare [4]. Group 2: Investment Trends - The investment strategy of insurance capital continues to emphasize hard technology sectors, including new energy, automotive, and biomedicine [5]. - Insurance capital is focusing on sectors that align with national long-term strategic directions, characterized by high growth potential and technological barriers, which can provide stable long-term returns [6]. - Future trends for insurance private equity funds are expected to include broader investment areas, deeper collaboration models, and a greater emphasis on industry-specific research capabilities [6].

Investment Rating - The report maintains a positive long-term outlook for the insurance sector, indicating a strong continuity in market performance despite recent fluctuations [2][12][16]. Core Insights - The financial sector experienced a mixed performance this week, with the non-bank financial index down by 1.45%, underperforming the CSI 300 index by 0.83 percentage points. The insurance sector saw a decline of 4.02%, while the brokerage sector decreased by 0.61% [1][10]. - The insurance sector's performance is driven by two main factors: policy support leading to economic recovery and liquidity easing combined with a strong stock market. The report suggests a shift from liquidity-driven growth to a focus on macro policy support and economic recovery expectations [2][13][16]. - The brokerage sector is expected to benefit from new regulations that enhance investment management quality, with a recommendation to focus on larger, undervalued firms and those involved in mergers and acquisitions [3][18]. - The banking sector is facing a slight decline, but there are signs of recovery in profitability for leading banks, with recommendations to focus on banks with high dividend yields and those expected to benefit from market conditions [19][21]. Summary by Sections Insurance Sector - The insurance sector's recent decline is attributed to short-term market sentiment and liquidity changes, but the long-term outlook remains positive due to strong support from both the liability and asset sides [2][12][16]. - Key recommendations include focusing on companies like China Pacific Insurance, China Ping An, China Life (H), and China Taiping, with a specific recommendation for New China Life [4][16]. Brokerage Sector - The brokerage sector's performance is slightly better than the overall market, with a focus on the new guidelines from the regulatory body that aim to improve fund management quality [3][17]. - Recommended firms include Guotai Junan, Huatai Securities, and others, particularly those with strong merger and acquisition prospects [4][18]. Banking Sector - The banking sector has shown a decline but is expected to stabilize, with recommendations to focus on banks with high earnings elasticity and strong dividend yields [19][21]. - Specific banks to watch include Hangzhou Bank, Ningbo Bank, and others, with a focus on those that have previously been undervalued [4][21].

Investment Rating - The industry investment rating is "Buy" [3] Core Insights - The report highlights a significant increase in insurance holdings, with public fund holdings in the non-bank financial sector rising from 1.49% in Q3 2025 to 2.48% in Q4 2025, driven by market style rebalancing and marginal support from the sector's fundamentals [24][34] - The report notes that despite the ongoing pursuit of high-elasticity technology sectors, the non-bank financial sector is at a historical low valuation, with strong performance in the insurance sector and increased trading volumes in brokerage firms, indicating fundamental resilience [24][34] - The report suggests that the public fund holdings in the securities sector increased slightly from 0.63% in Q3 2025 to 0.71% in Q4 2025, reflecting improved performance trends and the appeal of low valuations [33] Summary by Sections New Public Fund Issuance - In Q4 2025, the number of newly issued funds remained stable at approximately 477, with a year-on-year increase of 81% compared to 264 in Q4 2024, while the issuance volume decreased by 15.19% year-on-year [12][19] - The share of newly issued equity funds decreased from 41% in the previous quarter to 32%, while mixed fund shares increased from 15% to 19% [12] Non-Bank Financial Fund Holdings - Public fund holdings in the non-bank financial sector increased, with the total market capitalization share rising to 2.48% in Q4 2025 [24] - The report attributes this increase to a shift in funds from crowded technology sectors to undervalued defensive sectors, alongside a recovery in northbound capital allocations [24] Major Non-Bank Companies' Holdings - The report indicates that major non-bank companies saw slight increases in public fund holdings, with China Ping An leading at 1.11% and China Pacific Insurance at 0.35% [41] - The report recommends focusing on key companies such as CITIC Securities, Huatai Securities, and China Ping An for potential investment opportunities [24][41]

Core Insights - Insurance capital is increasingly flowing into the primary market, driven by the dual forces of regulatory policies promoting long-term investments and a low-interest-rate environment [1][4] - China Life announced a partnership to establish a private equity fund focusing on artificial intelligence and related applications, with a total investment of 4 billion yuan [3][4] - Since 2025, there has been a surge in insurance capital entering the private equity market, with significant investments in sectors like renewable energy and biomedicine [4][5] Investment Trends - Insurance funds are actively investing in private equity, with a focus on hard technology sectors such as artificial intelligence, integrated circuits, and renewable energy [5][6] - The investment strategy aligns with national strategic directions, emphasizing high growth potential and technological barriers, which are expected to yield stable long-term returns [5][6] - The insurance sector is encouraged to support venture capital through diversified investment tools, enhancing the development of long-term and patient capital [5][6] Future Outlook - Predictions indicate that insurance capital will expand its investment scope to include more hard technology and livelihood-related industries by 2026 [6] - There is an expectation for deeper collaboration models, potentially enhancing direct investment capabilities or linking with industrial capital [6] - Insurance capital is likely to focus more on niche sectors, strengthening research and investment capabilities to navigate uncertainties while adjusting investment rhythms and exit strategies [6]

Core Insights - The report highlights that the short-term changes in broad-based ETF shares are impacting weighted stocks, while long-term regulatory changes are constraining deviations in benchmarks [1][5]. Group 1: Market Performance - As of January 24, 2026, the Shanghai Composite Index rose by 0.84%, while the Shenzhen Component Index increased by 1.11%. The CSI 300 Index fell by 0.62%, and the ChiNext Index decreased by 0.34% [10]. - The average daily trading volume in the Shanghai and Shenzhen markets was 2.80 trillion yuan, reflecting a 19% decrease compared to the previous period [5]. Group 2: Industry Dynamics and Weekly Commentary Insurance Sector - The performance of listed insurance companies is expected to continue high growth, with marginal improvements in long-term interest spreads. The 10-year government bond yield was 1.83%, down 1 basis point from the previous week, indicating a stable economic outlook [11][14]. - The insurance sector is benefiting from regulatory changes that enhance asset-liability management capabilities, which are expected to support high growth in 2026. Key stocks to watch include China Ping An, China Life, and New China Life [14][15]. Securities Sector - The report notes a significant decline in broad-based ETF shares, with the CSI 1000 dropping by 42%, the SSE 50 by 25%, and the CSI 300 by 23%. This decline is expected to have a direct impact on the trading volumes of associated leading stocks [15][19]. - The China Securities Regulatory Commission has introduced new guidelines for public fund performance benchmarks, effective March 1, 2026, aimed at enhancing stability and protecting investor interests [24][28]. Group 3: Key Company Valuations and Financial Analysis - China Ping An (601318.SH) has a current price of 68.40 CNY, with a target value of 85.17 CNY, indicating a buy rating. The expected EPS for 2025 is 8.91 CNY, with a PE ratio of 7.68x [6]. - New China Life (601336.SH) is rated as a buy with a target value of 94.21 CNY, and an expected EPS of 14.04 CNY for 2025, reflecting a PE ratio of 4.96x [6]. - China Pacific Insurance (601601.SH) is also rated as a buy, with a target value of 52.44 CNY and an expected EPS of 6.09 CNY for 2025, resulting in a PE ratio of 6.88x [6].

Investment Rating - The report maintains an "Outperform" rating for the non-bank financial sector, indicating a positive outlook compared to the market [2]. Core Insights - The implementation of new regulations for public fund performance benchmarks aims to reshape the industry towards long-term value creation, moving from a "scale-oriented" to a "capability-oriented" approach [14][16]. - The insurance sector shows high efficiency in claims processing, with claim acceptance rates generally above 99%, driven by technology such as AI and big data [43][44]. Summary by Sections 1. Securities Business Overview and Weekly Review - The new public fund performance benchmark regulations will take effect on March 1, 2026, addressing issues like benchmark ambiguity and style drift, thereby enhancing the accountability of fund managers [14][15]. - The report highlights a mixed performance among major indices, with the Shanghai Composite Index at 4,136.16 points, up 0.84% week-on-week, while the non-bank financial index fell by 1.70% [16][19]. 2. Insurance Business Overview and Weekly Review - Recent claims reports from various insurance companies indicate a high claim acceptance rate, with companies like Ping An Life achieving 99.2% [43]. - Despite high acceptance rates, consumer perceptions of "claim difficulties" persist, primarily due to misunderstandings regarding policy terms and inadequate preparation of claim materials [44]. - The average payout for critical illness insurance is around 100,000 CNY, while the average treatment cost for severe illnesses can reach 400,000 CNY, highlighting a significant coverage gap [44]. 3. Market Liquidity Tracking - The central bank's net injection in the open market was 9,795 billion CNY for the week of January 19-23, 2026, indicating ongoing liquidity management efforts [49].