HK Stock Market Move | In the afternoon, the domestic insurance stocks all rose, as the risk factors for investing in insurance stocks were lowered. It is expected that the operational efficiency of insurance companies' capital utilization will improve.

Afternoon rise of the domestic insurance sector, as of press time, China Life Insurance (02628) rose 4.4% to HK$28; China Pacific Insurance (02601) rose 4.09% to HK$34.08; Ping An Insurance (02318) rose 2.85% to HK$63.25; PICC P&C (02328) rose 0.96% to HK$16.9. On the news front, on December 5th, the China Banking and Insurance Regulatory Commission adjusted down the risk factor for insurance companies investing in related stocks. Donghai Securities pointed out that this adjustment is expected to reduce the pressure on capital utilization for insurance companies, improve the efficiency of fund utilization, and further deepen long-term value investment. At the same time, the continued guidance on insurance funds as "patient capital" will also further support technological innovation and empower the real economy, optimizing the industry's asset-liability matching structure. The insurance sector is currently at a historically low valuation range, emphasizing the opportunity for sector allocation and recommending attention to large listed insurance companies with obvious moats. Guosheng released a research report stating that in the long run, the insurance industry will continue to benefit from the trend of bank deposit shifting, and diversified insurance demands such as retirement, medical care, and financial savings are expected to drive industry expansion. In the short term, the progress of the insurance companies' opening is smooth, which is expected to boost the performance of the liability end in 2026. The substantial reduction in the stepped product preset interest rate alleviates the industry's spread loss risk, the "integration of reporting and operation" promotes industry anti-insulation and concentration of head companies, and it is optimistic about the allocation value of the insurance sector.