Core Viewpoint - The insurance sector is experiencing a decline in stock prices, with major companies like New China Life, China Pacific Insurance, and China Life seeing significant drops in their share prices, indicating market concerns about the sector's performance [1][1][1] Company Performance - China Ping An reported a year-on-year decline in net profit for the first half of the year, but operating profit showed a year-on-year increase, attributed to three main factors: one-time accounting adjustments, issuance of convertible bonds, and unrealized gains from investments in listed companies not reflected in the profit statement [1][1][1] - The CFO of China Ping An suggested that the market should focus more on operating profit metrics rather than net profit figures [1][1][1] Market Trends - Longcheng Securities noted that the ten-year government bond yield has risen to around 1.78%, influenced by policies related to capacity reduction and market fluctuations in the insurance sector [1][1][1] - According to a recent survey by the Insurance Asset Management Association, stocks are the preferred investment asset for insurance institutions in the second half of 2025, followed by bonds and securities investment funds [1][1][1] - The insurance sector is viewed with cautious optimism regarding its allocation value despite the high volatility observed [1][1][1]