Zhi Tong Cai Jing·2025-08-12 07:12Group 1 - The insurance sector stocks have seen significant gains, with China Pacific Insurance rising by 5.14% to HKD 33.56, China Property & Casualty Insurance up by 2.86% to HKD 16.93, New China Life Insurance increasing by 2.72% to HKD 48.38, and Ping An Insurance rising by 1.92% to HKD 55.8 [1] - The latest research value for traditional insurance preset interest rates has been reported at 1.99%, triggering conditions for a rate adjustment due to being below the current level by 25 basis points for two consecutive quarters [1] - Major insurance companies have announced plans to lower preset interest rates, with product transitions expected to be completed by the end of August [1] Group 2 - Dongwu Securities indicates that the reduction in preset interest rates will lead to a decrease in the cost of new business liabilities, which will gradually improve the average cost of existing business as new business dilutes the existing portfolio [1] - The recent stabilization and increase in long-term interest rates, along with a strong stock market, are expected to alleviate the pressure on the life insurance industry's interest spread losses [1] - Following the adjustment of preset interest rates, the guaranteed returns on participating insurance will only be 25 basis points lower than traditional insurance, making it more attractive to customers due to its floating return design, which is expected to accelerate the shift in new business structure towards participating insurance [1]