Group 1 - The insurance stocks have experienced significant declines, with China Life falling by 3.81% to HKD 33.82, Xinhua Insurance down by 3.6% to HKD 60.2, and China Pacific Insurance decreasing by 3.14% to HKD 38.24 [1] - The government plans to issue approximately CNY 200 billion in special bonds to inject capital into major insurance companies, including China Life and PICC, marking the first time special bonds will be used for this purpose [1] - According to Industrial Securities, there is a pressing need for capital supplementation among leading state-owned insurance companies due to the downward trend in the solvency system, which is expected to continue affecting solvency levels in the coming years [1] Group 2 - The solvency pressure in the insurance industry is exacerbated by the increased allocation of equities, which further strains already tight solvency conditions [1] - From a regulatory perspective, the capital injection may aim to mitigate tail risks within the industry [1]