Zhi Tong Cai Jing·2025-09-16 03:25Group 1 - The insurance stocks collectively declined, with notable drops in shares of major companies such as Xinhua Insurance down 5.81% to 43.8 HKD, China Pacific Insurance down 4.7% to 31.26 HKD, China Life down 3.23% to 22.18 HKD, and China People’s Insurance down 3.67% to 6.83 HKD [1] - China Pacific Insurance announced plans to issue zero-coupon convertible bonds maturing in 2030, aiming to raise approximately 15.56 billion HKD, which could convert into 398 million shares, representing 14.36% of existing H-shares and 4.14% of total issued capital if fully converted at an initial conversion price of 39.04 HKD per share [1] - Recent performance of the insurance sector has been relatively weak, attributed to the high base of investment returns, leading to pressure on third-quarter earnings reports [1] Group 2 - The long-term interest rate bottoming out and the increase in OCI equity allocation are expected to enhance investment efficiency, while the reduction in preset interest rates and the integration of premium and claims are driving down costs [1] - The ongoing process of interest margin recovery is viewed as a significant theme, indicating that the insurance sector, particularly undervalued Hong Kong insurance stocks, presents good investment opportunities [1]